Key Points
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SpaceX and Alphabet’s Google have signed a multiyear cloud computing agreement.
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Under the deal, SpaceX will provide Google access to 110,000 Nvidia GPUs.
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Google will pay SpaceX $920 million monthly from October 2026 to June 2029.
On June 5, SpaceX announced a substantial agreement with Alphabet’s Google, where it will lease access to a cluster of 110,000 Nvidia GPUs, along with supporting data center hardware. In return, Google will pay SpaceX $920 million per month, totaling approximately $33 billion over the agreement’s span.
This collaboration signifies Google’s strategy to secure dedicated GPU capacity from an external infrastructure provider, amid growing demands for AI compute resources. The agreement stipulates that if SpaceX fails to deliver by September, Google can terminate or adjust the deal.
The move underscores Nvidia’s ongoing dominance in the AI chip market, as Google, while developing its own chips, still opts for Nvidia’s technology for extensive computing needs, countering narratives suggesting a decline in Nvidia’s market share due to ASIC developments.
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