The company needs additional computing power for Gemini Enterprise.
Google recently signed a $30 billion AI deal with SpaceX, which owns Elon Musk’s xAI. According to SpaceX filings with the Securities and Exchange Commission, it will receive $920 million per month from Google in exchange for computing power from xAI’s data centers from October this year to June 2029.
The agreement will give Google access to 110,000 NVIDIA GPUs, as well as CPUs and memory. SpaceX wrote that if it fails to provide access to that number of GPUs by September this year, Google can either terminate its deal immediately or accept the number of GPUs provided at a lower payment rate after a grace period of one month.
Since Google has its own global network of data centers and continues to build more, you may be wondering why it has to pay SpaceX for more computing power. Well, a Google Cloud spokesperson told cnbc And the new York Times It is “a short-term, timely agreement” to ensure that the company has the “ability to meet the growing demand” for Gemini Enterprise, its AI subscription for large businesses.
Google isn’t its only competitor in the AI space to which SpaceX is selling computing power. The Musk-owned company also has a contract with Anthropic, which gives Anthropic access to xAI’s Colossus 1 data center. Anthropic will pay $1.25 billion per month through May 2029, according to documents filed by SpaceX for its initial public offering. SpaceX is expected to go public on June 12 and raise enough money to make it the largest IPO in history.
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