Big orders before SpaceX IPO: Google spends $30 billion to rent computing power, making the $1.75 trillion valuation more credible?

SpaceX won a major order from Google before its IPO, securing access to approximately $30 billion worth of AI computing power for rental. This massive revenue provides real support for its $1.75 trillion valuation, while also showcasing Musk’s flexible approach to monetizing infrastructure.

SpaceX secures a major order before its IPO: Google splashes out on leased computing power

With SpaceX, which is set to become the world’s largest IPO, cutting another deal for a large revenue stream on the eve of listing, the U.S. Securities and Exchange Commission (SEC) said in documents released last Friday that Google has signed a large-scale cloud services agreement with SpaceX. Beginning October 2026 through June 2029, Google will pay SpaceX as much as $920 million per month to rent artificial intelligence (AI) computing power.

Throughout the entire cooperation period, Google will pay a total of roughly $30 billion—injecting substantial funds into SpaceX while also providing concrete financial backing for its claimed IPO valuation of up to $1.75 trillion.

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Google will rent 110,000 Nvidia chips and memory

At the core of this agreement, Google will rent from SpaceX approximately 110,000 Nvidia GPUs, CPUs, memory, and other related infrastructure. In an analysis, Bloomberg suggests that, based on the power consumption of Nvidia H200 chips, this batch of hardware could represent more than 100 megawatts (MW) of computing power.

A Google Cloud spokesperson also confirmed to the media that this is a short-term, timely transitional agreement, mainly to ensure that Google has enough computing power to meet the unexpectedly explosive customer demand for its enterprise AI platform, Gemini Enterprise.

In fact, Google’s parent company Alphabet has recently announced a plan to raise $8.5 billion through stock sales to cope with unprecedented customer demand, and has raised its capital expenditure forecast for this year to between $180 billion and $190 billion.

Image source: itech-support Google recently launched the enterprise-level agentic AI platform Gemini Enterprise

A delicate relationship between SpaceX and Google

Google invested in SpaceX as early as 2015, when SpaceX’s valuation was only $12 billion. Based on available data, after SpaceX merged with Elon Musk’s AI company xAI in February this year, Google is currently expected to still hold about 5% of SpaceX’s equity. With SpaceX set to list next week, this early investment could yield returns of more than $100 billion for Alphabet.

Interestingly, the two companies are competitors and partners in different areas. In SpaceX’s filing, it lists Google as a competitor in the internet connectivity sector because SpaceX has the Starlink satellite internet, while Google operates fiber broadband. In the AI space, xAI’s Grok and Google’s Gemini are also direct competitors.

In addition, five years ago, their roles were swapped. At that time, Google provided cloud and network resources to support Starlink; now, SpaceX is exporting AI computing power to Google.

Musk flips xAI’s positioning, turning data centers into foundational infrastructure suppliers

SpaceX is expected to complete its IPO this week on June 12 and begin trading on Nasdaq. It has also recently secured two consecutive deals for computing power.

In May this year, SpaceX disclosed in its S-1 filing a similar agreement with Anthropic: Anthropic will pay $1.25 billion per month by 2029 to lease all available computing power at SpaceX’s Colossus data center in Memphis, Tennessee.

• Related report: Claude Code unleashed! Anthropic partners with SpaceX to supplement computing power—subscribers’ five-hour quota doubles

Although xAI, founded three years ago, has lagged behind in coding capabilities, Musk is shifting his focus to the advantages of data center infrastructure.

In its IPO prospectus, SpaceX admits that its AI division generated only $818 million in revenue in the first quarter, while operating losses reached as much as $2.5 billion. Of the total $10.1 billion in capital expenditures in the first quarter, as much as $7.7 billion was allocated to AI-related construction.

By leasing out the massive computing capacity that was originally built for training the Grok model but temporarily went unused to competitors such as Google and Anthropic, SpaceX is showing the market its flexibility in monetizing and reallocating infrastructure resources. This should be a strong shot in the arm ahead of its aim to raise a record $7.5 billion when it lists on Nasdaq next week.

Further reading:
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