Starlink · Gemini · Google · SpaceX · Elon Musk · xAI · CNBC Technology
Google to pay SpaceX $920 million a month for compute capacity at xAI data centers
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Days before a planned IPO that's expected to raise record sums of cash, SpaceX has inked a deal with Google that will bring in $920 million a month by providing AI compute capacity to the search giant.
Key facts
- The company in April revised its capital expenditure forecast this year to between $180 billion and $190 billion, up from its previous estimate of $175 billion to $185 billion
- Meanwhile, the AI segment of the business recorded an operating loss in the quarter of $2.5 billion on $818 million in revenue
- The Google agreement marks the second massive infrastructure deal announced by SpaceX following its merger in February with xAI, Elon Musk's artificial intelligence company, in a transaction
- Days before a planned IPO that's expected to raise record sums of cash, SpaceX has inked a deal with Google that will bring in $920 million a month by providing AI compute capacity to the search giant
Summary
According to a regulatory filing on Friday, Google will use about 110,000 Nvidia graphics processing units, as well as central processors, memory and other components housed in SpaceX's data centers. SpaceX said in the filing that if it fails to "deliver access to the committed amount of GPUs by September 30, 2026," Google can immediately end the agreement, or accept the number of GPUs provided at a reduced fee after a one-month grace period. After this year, the agreement can be terminated by either party provided they give 90 days' notice.