Under an agreement the companies signed Friday, Google will pay that amount monthly from October through June 2029. From now through September, the company will pay a reduced fee as SpaceX ramps up capacity, according to the filing.
If SpaceX fails to deliver access to the compute by Sept. 30, then, after a one-month grace period, Google can terminate the agreement or accept the available compute at a reduced fee. In addition, after Dec. 31, either company can terminate the agreement with 90 days’ notice, per the filing.
“The compute capacity provided includes approximately 110,000 Nvidia GPUs, CPUs, memory and other related components,” SpaceX said in the filing.
CNBC reported Friday that a Google spokesperson said the company made the deal “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.”
This news came two days after Google parent company Alphabet said it increased a record-breaking stock offering to expand its AI infrastructure. The company said Wednesday (June 3) that it planned to raise $84.75 billion in equity capital. That was an increase from the $80 billion it announced two days before that.
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When Alphabet first announced the equity offerings on Monday (June 1), the company said in a press release that the demand for its AI solutions and services is exceeding its available supply.
“By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead,” Google said in a Monday press release.
Meanwhile, SpaceX’s SpaceXAI business announced May 6 that it signed an agreement with Anthropic to provide that company access to SpaceXAI’s AI supercomputer Colossus 1. Later, in its May 20 registration statement for an initial public offering, SpaceX said that Anthropic agreed to pay it $1.25 billion per month through May 2029, with a reduced fee for May and June as the capacity ramps up.
PYMNTS reported May 21 that in the registration statement, SpaceX signaled that the coming AI economy will be one through ownership of AI infrastructure.
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