Google will pay SpaceX $920 million per month for AI computing capacity, a deal that totals approximately $30 billion over 32 months. This agreement encompasses access to around 110,000 Nvidia GPUs located in SpaceX data centers. The deal was disclosed in a regulatory filing by SpaceX on June 5, ahead of its planned initial public offering.
Payments from Google will commence in October 2026 and continue through June 2029. There will be a reduced fee during a ramp-up period that lasts until September 2026. Google reserves the right to terminate the agreement if SpaceX does not deliver the agreed GPU capacity by September 30, 2026.
This contract follows another significant agreement SpaceX made in May 2023, where it signed a separate deal with Anthropic for $1.25 billion per month. The total annual recurring revenue for SpaceX from AI computing has now reached approximately $26 billion.
BNP Paribas analyst Stefan Slowinski stated that Google’s substantial commitment signals ongoing robust demand for AI infrastructure, which could have a favorable impact on Microsoft’s Azure cloud services. Slowinski maintains a Buy rating on Microsoft with a price target of $555, indicating potential for Azure’s growth rate to rise into the mid-40s percent range.
In its recent earnings report, Microsoft noted a 40% year-over-year increase in Azure revenue for the March quarter, exceeding its own projections. The company also revealed $627 billion in commercial remaining performance obligations, which reflects contracted future revenue.
Slowinski expressed concern over potential Azure price increases due to rising memory and CPU costs, particularly as AI-related contracts near renewals. He also highlighted improvements in feedback from users of Microsoft’s Copilot, reinforcing the optimistic outlook for Azure’s growth trajectory.
