SpaceX and Google sign cloud deal with 110,000 Nvidia GPUs

SpaceX and Google Cloud signed a multi-billion dollar agreement covering 110,000 Nvidia graphics processing units, CPUs and memory resources, marking one of the largest single cloud infrastructure commitments as the rocket company prepares for its initial public offering later this month.

"The scale of this deal reflects the insatiable demand for AI compute capacity across the entire technology stack," said Rachel Kim, senior analyst at Edgen. "SpaceX is effectively monetizing its data center assets before its IPO, while Google locks in a marquee customer for its cloud business."

The agreement includes 110,000 Nvidia GPUs — likely a mix of H100 and next-generation B200 chips — along with associated central processing units and memory modules, according to a person familiar with the terms. Neither company disclosed the financial value, though similar deals for comparable GPU volumes have ranged from $3 billion to $5 billion based on current Nvidia pricing.

The partnership comes as SpaceX, valued at $1.78 trillion by Goldman Sachs in a recent analysis, races to diversify beyond its core launch and satellite businesses. Goldman projects SpaceX's AI-related revenue will surge to $322 billion by 2030 from $3.2 billion in 2025, a 100-fold increase driven largely by compute leasing and data center operations. The company's S-1 filing revealed it already rents surplus chip capacity to Anthropic, the AI startup that confidentially filed for its own IPO on June 1.

For Google Cloud, the deal provides a high-profile win in its battle with Amazon Web Services and Microsoft Azure for AI workloads. Google has invested billions in expanding its cloud infrastructure, including a $5 billion commitment to Anthropic and partnerships with Broadcom for custom tensor processing units. The hyperscaler's cloud revenue grew 32% year over year in the first quarter, though it trails AWS and Azure in market share.

The 110,000-GPU commitment also bolsters Nvidia's dominant position in AI chips. The Santa Clara, California-based company controls roughly 80% of the AI accelerator market, with data center revenue reaching $47.5 billion in its most recent fiscal year. Broadcom, which supplies custom AI chips to Google and other hyperscalers, reported AI semiconductor revenue of $10.8 billion in its fiscal second quarter, up 143% from a year earlier.

SpaceX's cloud deal underscores a broader trend of non-traditional technology companies building and leasing AI compute capacity. The company's Starlink satellite network generates vast amounts of data requiring on-orbit and ground-based processing, and its data center operations have become a growing revenue stream. The agreement with Google gives SpaceX access to Google's global network of more than 40 cloud regions while allowing it to monetize its own infrastructure investments.

The deal is expected to close before SpaceX's IPO, which could value the company at more than $2 trillion, according to analysts. The listing is one of three landmark technology IPOs expected in 2026, alongside Anthropic and OpenAI, that are reshaping how index providers and institutional investors approach new listings.

Nvidia shares rose 2.5% on the news, while Google parent Alphabet gained 3.3%. SpaceX's pre-IPO trading on secondary markets was little changed.

This article is for informational purposes only and does not constitute investment advice.