SpaceX and Google sign a major deal for cloud services
SpaceX has announced that it has signed a multi-year cloud services agreement with Google, a subsidiary of Alphabet, thereby securing computing capacity ahead of the highly anticipated IPO in the United States next week.
Under the agreement, Google will pay SpaceX $920 million a month from October this year until June 2029, with a gradual increase in capacity at a reduced rate until September, as stated by Elon Musk’s space company in a document filed with the US SEC.
The deal brings SpaceX another high-profile client, following Anthropic, bolstering its strategy in the field of artificial intelligence ahead of its upcoming initial public offering (IPO), which aims to raise $75 billion.
The computing power provided comprises approximately 110,000 Nvidia GPUs, CPUs, memory and other related components.
If SpaceX fails to provide access to the agreed number of GPUs by 30 September, following a one-month grace period, “Google may terminate the agreement immediately or accept the number of GPUs provided, with a corresponding proportional reduction in monthly fees,” the company stated.
