SpaceX has secured another significant contract related to artificial intelligence, this time with Google, marking a pivotal moment for the company in the expanding AI landscape. Starting in October 2026, this multi-year agreement will see Google commit $920 million each month for a duration extending through June 2029. This deal is projected to accumulate a total revenue of around $30 billion over approximately 32 months, granting Google access to about 110,000 Nvidia GPUs housed within SpaceX’s robust data center infrastructure.
#How Does This Expand SpaceX's AI Portfolio?
The agreement with Google follows closely on the heels of a previous contract signed with Anthropic, which was disclosed in May 2026. That contract involves Anthropic committing $1.25 billion monthly until May 2029, giving them exclusive access to Colossus 1, SpaceX’s extensive data center facility located in Memphis, Tennessee. Colossus 1, which supports over 220,000 Nvidia GPUs and operates on an impressive 300 megawatts of power capacity, underscores SpaceX's strategy to pivot from aerospace to advanced data services.
It’s noteworthy that combined, these two significant agreements contribute an estimated $26 billion in annual recurring revenue, effectively transforming SpaceX into a pivotal player in the AI compute market.
#What’s Driving SpaceX’s Shift to AI?
Originally, the data center infrastructure was meant to underpin Elon Musk’s xAI initiative and its Grok models. However, after the merger between SpaceX and xAI in February 2026, the company began to transition from utilizing its computing resources internally to leasing substantial GPU capacities to external clients, like Google and Anthropic.
#What Should Investors Know About Upcoming IPO?
A critical aspect for investors is the IPO planned for SpaceX on June 12, 2026, just a week following the announcement of the Google agreement. The target for this initial public offering is a substantial $75 billion at a share price set at $135, which would value the company at an astounding $1.75 trillion. With the Anthropic contract alone valued at about $45 billion over its three-year duration, the joint revenue expectations from both clients amount to about $75 billion, providing a strong buffer as the company enters its roadshow.
#How Will Future Contracts Affect Growth?
The terms of the Anthropic contract solidify exclusivity over the Colossus 1 facility, meaning that this capacity is completely allocated. On the other hand, the Google deal taps into a separate pool of Nvidia GPUs. The essential question for SpaceX will be how much additional operational capacity can be established, and the timeline on this expansion of resources will be critical. If managed effectively, SpaceX may secure further significant client contracts before these current agreements culminate in 2029.
In less than four months following the xAI merger, SpaceX has already signed contracts worth an impressive $75 billion in anticipated future revenue.