SpaceX lands Google AI compute deal after Anthropic pact ahead of IPO

June 5 (Reuters) – SpaceX said on Friday it has entered into a multi-year cloud services agreement with Alphabet’s (GOOGL.O), opens new tab Google, locking ​in computing capacity as it prepares for its highly anticipated ‌U.S. stock market debut next week.

As part of the deal, Google will pay SpaceX $920 million monthly from October this year to June 2029, with capacity ramping up through ​September at a reduced fee, Elon Musk’s space venture said ​in a regulatory filing.

The compute capacity provided includes about 110,000 ⁠Nvidia (NVDA.O), opens new tab GPUs, CPUs, memory and other related components.

The pact brings another high-profile ​customer to SpaceX, after Anthropic, strengthening its AI narrative as it targets ​a $75 billion raise in its upcoming initial public offering.

Anthropic said in May it had reached a deal to use the full computing power of SpaceX’s Colossus 1 facility in ​Memphis, Tennessee, which houses more than 220,000 Nvidia processors and will ​give the Claude chatbot maker 300 megawatts of new capacity within a month.

On an ‌annual basis, ⁠SpaceX’s compute access deals with Anthropic and Google are worth roughly $26 billion combined.

SpaceX’s disclosed compute-capacity agreements with Anthropic and Google are worth more than $70 billion in aggregate, assuming neither contract is terminated before its scheduled end ​date.

If SpaceX does ​not provide access ⁠to the agreed number of GPUs by September 30, then, after a one-month grace period, “Google may immediately terminate ​the agreement or accept the number of GPUs provided, ​with a ⁠corresponding pro-rata reduction in the monthly fees,” the company said.

After December 31, either party may terminate the agreement by providing 90 days’ notice. Google will ⁠retain ​ownership of, and all intellectual property rights ​in, its content, AI models and associated data.