Google has begun paying SpaceX $920 million per month for computing services, marking the first major payment under a new contract. The agreement, which runs from October 2026 through June 2029, is valued at approximately $30 billion over its 33-month term. This deal gives Google access to about 110,000 Nvidia GPUs, highlighting SpaceX's growing role in the AI infrastructure space.
The contract represents a significant revenue boost for SpaceX, with annual payments of around $11 billion. For a company with a market cap of $2.2 trillion, this is a modest sum, but it's substantial compared to SpaceX's current revenue of $20.7 billion over the trailing 12 months. The deal could increase SpaceX's yearly revenue by over 50%, excluding other major contracts like the one with Anthropic, which is worth up to $84.5 billion through May 2029.
However, the contracts include a 90-day mutual cancellation clause, allowing either party to terminate the agreement with short notice after an initial period. This means the revenue from these deals is not guaranteed long-term. Still, the agreements signal strong demand for SpaceX's AI infrastructure services and could justify the company's premium valuation.