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Under terms of the deal, Alphabet has agreed to pay SpaceX $920 million per month from October 2026 through June 2029. The cloud capacity provided to Alphabet will increase gradually over the three year term of the deal.
The agreement will provide Alphabet with approximately 110,000 Nvidia (NVDA) graphics processing units (GPUs), central processing units (CPUs), memory chips, and other related components needed to run artificial intelligence (AI) workloads. The deal will significantly boost SpaceX’s revenue.
Details of the Deal
If SpaceX fails to deliver access to the committed number of GPUs and other processors by September 30 of this year, Alphabet can terminate the agreement after a one-month grace period. After December 31 this year, either Alphabet or SpaceX can terminate the agreement with 90 days’ notice.
