Google to pay SpaceX $920 million a month for compute capacity at xAI data centers SpaceX has agreed to provide Google with AI compute capacity, including 110,000 Nvidia GPUs, for $920 million per month until June 2029. This deal follows SpaceX’s merger with xAI and aims to leverage its significant investment in data centers. The company is also facing competition and scrutiny in the AI sector.

• SpaceX signed a deal with Google to provide AI compute capacity for $920 million per month.
• The agreement spans from October 2024 to June 2029, involving around 110,000 Nvidia GPUs.
• This deal comes ahead of SpaceX’s planned IPO, which is expected to raise significant funds.
• SpaceX has also recently made a similar infrastructure deal with Anthropic.
• The company is investing heavily in AI data centers, with capital expenditures totaling $10.1 billion in Q1.
• SpaceXAI’s AI segment recorded an operating loss of $2.5 billion in the first quarter.
• SpaceXAI faces lawsuits and probes related to its Grok model’s ability to generate non-consensual sexual images.
• Google is also increasing its AI spending significantly to compete with hyperscalers.
• Google and SpaceX previously had a cloud pact with reversed roles, where Google supplied resources to SpaceX.