Elon Musk Announces Google AI Infrastructure Deal Days Ahead of SpaceX IPO
SpaceX has secured a significant infrastructure agreement with Google, valued at $920 million per month, for AI computing capacity utilizing Nvidia GPUs in SpaceX data centers. This deal, along with a previous agreement with Anthropic for a Memphis, Tennessee data center, comes ahead of SpaceX's planned IPO. Google stated this capacity is needed to meet surging customer demand for its Gemini Enterprise platform.
Elon Musk's SpaceX has finalized a substantial infrastructure deal with Google worth $920 million per month for AI computing capacity, ahead of SpaceX's initial public offering. The agreement, running from October 2026 through June 2029, involves Google utilizing approximately 110,000 Nvidia GPUs, along with other components, housed in SpaceX data center facilities. A Google Cloud spokesperson indicated this arrangement provides "bridge capacity" for the unexpected high demand for their Gemini Enterprise agent platform.
This marks the second major infrastructure deal disclosed by SpaceX since its February merger with Elon Musk's AI venture, xAI, which valued the combined entity at $1.25 trillion. Previously, in May, Anthropic announced plans to use all available compute capacity at SpaceX's Colossus 1 data center located in Memphis, Tennessee. The deals aim to bolster SpaceX's AI narrative and justify substantial data center investments, particularly in the Memphis region, where first-quarter capital expenditures for AI infrastructure reached $7.7 billion.
Despite Musk's target IPO valuation of $1.75 trillion for SpaceX, financial services giant Morningstar has valued the company at roughly half that amount, around $780 billion. Morningstar equity analyst Nicolas Owens expressed skepticism about xAI's Grok being a leading AI lab and suggested that investors might find more attractive stock prices post-IPO. The article also notes that many investors view the investment as a bet on Musk's ability to mobilize retail traders, potentially generating strong demand for shares.