Google Contracts SpaceX for Cloud Capacity Ahead of IPO

Google has entered an agreement to lease data center capacity from SpaceX, supporting SpaceX's artificial intelligence business expansion. The contract, valued at $920 million per month, spans from October 2026 to June 2029.

This agreement includes access to at least 110,000 Nvidia chips. Google retains the right to terminate the agreement in October 2026 if the promised chip capacity is not delivered.

Both parties can cancel the agreement with 90

Both parties can cancel the agreement with 90 days' notice starting in 2027. This marks the second significant deal for SpaceX to lease computing capacity, preceding its anticipated initial public offering.

SpaceX's IPO is projected to value the company at $1.77 trillion. The company has promoted plans for in-space data centers to investors, addressing high energy costs associated with terrestrial data centers.