New Delhi, June 6 (IANS). Elon Musk’s company SpaceX has said that Google’s parent company Alphabet has agreed to pay $ 920 million per month to acquire computing capacity under an agreement related to cloud services, which will run from October 2026 to June 2029.
According to exchange filings in the US, the total value of this agreement is approximately $30 billion. This amount is fixed on the basis of monthly payments during the entire term of the agreement.
SpaceX said that under this agreement, Google will get access to 1,10,000 Nvidia graphics processing units (GPUs) as well as central processing units (CPUs), memory and other related hardware. This capability will help strengthen Google’s AI services.
Based on the power of Nvidia’s H200 chips, the system is estimated to provide more than 100 megawatts of computing power, equivalent to powering about 75,000 homes at any one time.
According to the exchange filing, if SpaceX fails to provide access to Nvidia chips by September 30, Google will have the legal right to terminate the agreement. An additional grace period of one month has also been given for this.
Apart from this, both the parties will also have the right to terminate this agreement by giving 90 days notice.
According to reports, a Google Cloud spokesperson said that the agreement will help the company meet the growing demand for its AI services.
Alphabet reported in its quarterly earnings report that Google Cloud’s backlog, i.e. contracts that have not yet yielded revenue, has increased to more than $460 billion. This is almost double compared to the previous quarter.
“This is a short-term and timely agreement that will give us additional capacity to meet growing customer demand for our agent platform and Gemini Enterprise,” a Google spokesperson said in a statement.
He said that the demand for these services has increased faster than the company’s expectations.
SpaceX has previously entered into a similar agreement with Anthropic PBC.
Analysts say that even though XAI lags behind some competitors in terms of coding capability, its biggest strength is its data center infrastructure.
The company has developed large data centers in Memphis, Tennessee, and is now expanding them in Mississippi.
SpaceX revealed earlier this year that Google had a 6.11 percent stake in the company by the end of 2025. However, after the merger of SpaceX with Elon Musk’s XAI, Google’s stake has come down to about 5 percent.
–IANS
DBP
