SpaceX, Alphabet ink 30-billion usd loud deal for AI computing capacity: Report
SpaceX has reportedly signed a cloud services contract with Alphabet worth about $30 billion, supplying Nvidia GPUs and computing capacity from 2026 to 2029. The deal aims to support rising AI demand, with termination clauses tied to chip delivery timelines.
New Delhi: Elon Musk’s SpaceX said that Google’s parent company Alphabet has agreed to pay it $920 million a month for computing capacity under a cloud services contract that runs from October 2026 through June 2029.
The total monthly fee amounts to roughly $30 billion over the life of the agreement, according to an exchange filing in the US.
The contract gives Google access to 110,000 Nvidia graphics processing units as well as central processing units, memory and related components, SpaceX said.
Based on the capacity of Nvidia’s H200 chips, the arrangement may account for over 100 megawatts of computing power equivalent to the capacity to energise 75,000 homes at any given moment.
If SpaceX fails to deliver access to Nvidia chips by September 30, Google can lawfully terminate the contract, with a one-month grace period, the filing showed. Either party also has the right to end the agreement with 90 days’ notice.
A Google Cloud spokesperson was quoted as saying in reports that the deal would help the company meet demand for its AI services.
Alphabet said in its quarterly earnings report that Google Cloud’s backlog — the measure of contracted work that hasn’t been recorded as revenue yet — nearly doubled on a sequential basis to over $460 billion.
“This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected,” the Google spokesperson said in a statement.
SpaceX had earlier signed a similar agreement with Anthropic PBC. Analysts said even though xAI is lagging in terms of coding prowess, it believes its edge lies in data centre infrastructure, which the three-year-old business has built in Memphis, Tennessee, and is now expanding in Mississippi.
SpaceX disclosed earlier this year that Google owned a 6.11 per cent stake in the company at the end of 2025 and Google’s holding stood at roughly 5 per cent following SpaceX’s merger with Musk’s xAI.
