Anthropic and Google Are Paying SpaceX $2.17 Billion Every Month — That's $26 Billion a Year

After acquiring xAI earlier this year, SpaceX has been aggressively renting out computing capacity from its Colossus data centres.

As we approach Elon Musk's SpaceX IPO on 12 June with a $1.7 trillion valuation, the AI rocket company announced a multi-year compute power supply deal with Google for $920 million a month, shortly after securing a $1.25 billion monthly agreement with Anthropic. This brings SpaceX's total monthly revenue from these two contracts to $2.17 billion, or an impressive $26 billion annually.

SpaceX revealed in a Friday regulatory filing that it has entered a cloud service agreement with Alphabet's Google. Interestingly, Google was an early investor in SpaceX, with Google exec Donald Harrison on the SpaceX board.

'This is a short-term, timely agreement 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 had told The Wall Street Journal.

Under the deal, Google will rent data center capacity from SpaceX and pay the rocket company $920 million per month from October 2026 through June 2029. The computing capacity will include at least 110,000 Nvidia graphics processing units, CPUs, memory, and other related components.

The agreement is also expected to ramp up considerably through September at a lower fee. While the deal expands over the summer, Google has the option to immediately cancel the deal or accept the number of GPUs offered, along with a corresponding pro-rata reduction in the monthly fees, if SpaceX fails to provide the promised chips. In all, either party can terminate the agreement with a 90-day notice.

SpaceX–Anthropic Deal in May

The Google deal is SpaceX's second major contract in recent months for renting out computing capacity to a major rival. The rocket company had also pitched its plans to build orbital data centres in space as energy bills from terrestrial data centres continue to rise. Note that SpaceX has had surplus computing capacity in its massive Colossus data centres, which were initially built to train its Grok.

In May, Anthropic also disclosed plans to rent 222,000 Nvidia chips from SpaceX, before expanding the deal soon after. Anthropic revealed it was also interested in using orbital data centres from SpaceX if the rocket company launches that offering successfully.

According to the IPO prospectus, SpaceX stated that Anthropic will pay it $1.25 billion per month for compute capacity at the Colossus data centre built by xAI. This deal runs through 2029.

Note that a larger number of investors can now participate in the upcoming SpaceX IPO, as some brokerages like Fidelity lowered the brokerage account balance requirement to just $2,000 from $500,000.

However, investors should carefully understand the IPO prospectus, which was amended multiple times. Note that companies like Morningstar also estimated that SpaceX is highly overvalued and investors could buy the stock at a better price after the IPO.

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