Elon Musk’s SpaceX has secured a massive infrastructure agreement with Google just days before its planned IPO, with the search giant agreeing to pay $920 million per month for AI computing capacity.
CNBC reports that according to a regulatory filing, Google will utilize approximately 110,000 Nvidia graphics processing units along with central processors, memory, and additional components located within SpaceX data center facilities. The contract runs from October 2026 through June 2029 at the full monthly rate of nearly a billion dollars a month, with capacity scaling up through September at a discounted fee.
A Google Cloud spokesperson communicated to CNBC via email that the arrangement was established “to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected.” Google launched Gemini Enterprise, its subscription offering for large organizations, in October of last year.
This Google contract represents the second major infrastructure agreement disclosed by SpaceX since completing its February merger with xAI, Elon Musk’s artificial intelligence venture, in a deal that established a $1.25 trillion valuation for the combined organization. During May, Anthropic revealed plans to utilize all available compute capacity at SpaceX’s Colossus 1 data center located in Memphis, Tennessee. Breitbart News previously reported that Musk has caused confusion over this deal due to publishing terms different than those in the IPO documents.
Google has realized extraordinary returns from its early investment in SpaceX. When Google invested in 2015, Musk’s aerospace and technology company carried a valuation of merely $12 billion. SpaceX now targets a public market valuation exceeding $1.75 trillion in its forthcoming offering scheduled for Friday.
Musk appears focused on strengthening SpaceX’s artificial intelligence narrative ahead of the IPO to demonstrate returns on substantial data center investments concentrated in the Memphis region. SpaceX disclosed in its prospectus that first-quarter capital expenditures reached $10.1 billion, representing more than double the year-ago figure. The overwhelming majority of these expenditures, totaling $7.7 billion, was directed toward artificial intelligence infrastructure.
One of the primary issues around the SpaceX IPO is Musk’s valuation of $1.75 trillion. Breitbart News previously reported that financial services giant Morningstar puts the company’s value at roughly half that amount:
At a $1.75 trillion valuation with the company booking revenue of $18.67 billion in 2025, SpaceX would trade at a trailing price-to-revenue multiple of 93.7 times. Analysts at Morningstar have actually placed their valuation on the company at $780 billion, roughly half of the company’s targeted $1.75 trillion target. Morningstar equity analyst Nicolas Owens commented on the company’s AI efforts, saying: “We don’t see Grok as one of the leading AI labs today,” adding: “We think the company has been significantly overvalued and investors will have opportunities to buy the stock at more attractive levels after the IPO.”
For many investors, the investment represents as much a bet on Musk himself as on SpaceX. His track record at Tesla and his ability to mobilize retail traders could generate strong demand for shares, as his reputation has done for previous ventures.
With IPOs related to AI expected to raise up to $4 trillion in the coming months, artificial intelligence is clearly having a massive on the American economy. Breitbart News social media director and author Wynton Hall explains in his instant bestseller, Code Red: The Left, the Right, China, and the Race to Control AI, that conservatives must develop a plan to deal work with AI that avoids the landmines outlined in this lawsuit, but still captures the benefits of this powerful technology.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of AI, free speech, and online censorship.