Tech giant Google (GOOGL) has agreed to pay aerospace and AI firm SpaceX (SPCX) as much as $30 billion for cloud compute capacity in a three-year deal signed just one week before SpaceX’s planned IPO. According to an SEC filing, the agreement gives Google access to 110,000 Nvidia (NVDA) GPUs, along with CPUs, memory, and other related components. The deal could become a major revenue source for SpaceX, which recently merged with xAI and is trying to position itself as more than just a rocket and satellite company.
Under the agreement, Google will pay SpaceX $920 million per month from October 2026 through June 2029. However, the deal includes an important protection for Google. If SpaceX does not provide access to the full committed GPU capacity by September 30, 2026, then after a one-month grace period, Google can either terminate the agreement or accept fewer GPUs at a reduced monthly price. After December 31, 2026, either company can also cancel the deal with 90 days’ notice.
Importantly, Google will keep ownership of its intellectual property, AI models, content, and related data throughout the agreement. The deal comes after Anthropic signed a similar AI infrastructure agreement. In late May, Elon Musk said that SpaceX had agreed to lease its Colossus data center clusters to Anthropic for 180 days, with a mutual 90-day cancellation notice afterward, although the lease has the possibility to last until May 2029.
What Is the Prediction for TSLA Stock?
When it comes to Elon Musk’s companies, most of them are privately held. As a result, until SpaceX goes public, retail investors can invest in his most popular company, Tesla (TSLA). Turning to Wall Street, analysts have a Moderate Buy consensus rating on TSLA stock based on 12 Buys, 14 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $404.54 per share implies 3.5% upside potential.
