Technology giant Alphabet Inc., through its Google Cloud division, has entered into a multi-billion-dollar cloud computing agreement with SpaceX, as demand for artificial intelligence (AI) services continues to surge globally.
Under the agreement, Google will pay SpaceX approximately 920 million dollars monthly from October 2026 through June 2029 for computing capacity, according to details disclosed in a regulatory filing.
The arrangement is expected to be worth about 30 billion dollars over the life of the contract.
The filing indicated that SpaceX is expected to provide Google access to a large pool of advanced computing resources, including more than 110,000 graphics processing units (GPUs) manufactured by Nvidia Corporation, as well as central processing units, memory chips and related infrastructure.
The agreement includes provisions allowing Google to terminate the contract if SpaceX fails to provide access to the required Nvidia chips by Sept. 30, subject to a one-month grace period.
A spokesperson for Google Cloud said the partnership would help the company address rapidly growing demand for its AI products and services.
“This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform and Gemini Enterprise offerings, which have exceeded expectations,” the spokesperson said.
The deal comes amid intensifying competition among major technology companies to secure computing infrastructure needed to power advanced AI models and applications.
In its latest earnings report, Alphabet disclosed that Google Cloud’s contracted backlog had grown to more than 460 billion dollars, reflecting strong demand for its cloud and AI services.
Industry observers say the agreement highlights the increasing importance of computing infrastructure as AI companies race to expand their capabilities.
SpaceX, led by billionaire entrepreneur Elon Musk, has been expanding its activities in artificial intelligence and computing infrastructure through its AI subsidiary, xAI.
The company has invested heavily in data centre infrastructure, including facilities in Memphis, Tennessee, and expansion projects in Mississippi.
The computing capacity covered by the agreement is estimated to represent well over 100 megawatts of processing power, underscoring the scale of resources required to support modern AI systems.
The partnership also reflects the evolving relationship between Google and SpaceX, which have maintained both collaborative and competitive ties in recent years.
Earlier disclosures showed that Google held a minority stake in SpaceX before the aerospace company’s merger with xAI.
Analysts say the deal could strengthen Google’s ability to meet rising AI demand while providing SpaceX with a significant revenue stream as it expands its technology and infrastructure businesses.
The agreement is expected to run until mid-2029 unless terminated earlier under provisions contained in the contract.
