Google to pay SpaceX $920 million a month for compute capacity at xAI data centers
Ahead of a planned IPO, SpaceX inked a deal to rent compute capacity to Google for $920 million per month for 32 months.
TL;DR
- SpaceX signed a deal with Google to provide AI compute capacity for $920 million per month.
- The agreement spans from October 2024 to June 2029, involving around 110,000 Nvidia GPUs.
- This deal comes ahead of SpaceX's planned IPO, which is expected to raise significant funds.
- SpaceX has also recently made a similar infrastructure deal with Anthropic.
- The company is investing heavily in AI data centers, with capital expenditures totaling $10.1 billion in Q1.
- SpaceXAI's AI segment recorded an operating loss of $2.5 billion in the first quarter.
- SpaceXAI faces lawsuits and probes related to its Grok model's ability to generate non-consensual sexual images.
- Google is also increasing its AI spending significantly to compete with hyperscalers.
- Google and SpaceX previously had a cloud pact with reversed roles, where Google supplied resources to SpaceX.