SpaceX has signed a cloud service agreement with Google to provide artificial intelligence compute capacity ahead of its planned IPO. Under the agreement, Google will pay SpaceX $920 million per month from October 2026 through June 2029, covering access to about 110,000 Nvidia GPUs hosted in SpaceX data centers. The deal adds to investor attention around SpaceX's AI infrastructure business as the company prepares for a June 12 trading debut targeting a $135 per-share IPO price and $1.75 trillion to $1.8 trillion valuation. The contract follows a similar compute arrangement with Anthropic, positioning SpaceX in competition with AI infrastructure providers such as CoreWeave and Nebius.
Google Pays SpaceX $920M Monthly for GPU Capacity Starting October 2026
The agreement covers access to about 110,000 Nvidia GPUs, along with CPUs, memory and related components hosted in SpaceX data centers. Capacity will ramp through September at a reduced fee before the full monthly rate begins in October 2026. Together, Google and Anthropic are expected to pay SpaceX about $2.17 billion per month, equal to a revenue run rate of about $26 billion per year.
Google can terminate the agreement if SpaceX fails to provide the committed GPU capacity by September 30, 2026, unless Google accepts reduced capacity after a one-month grace period. After December 31, 2026, either party can terminate the agreement with 90 days' notice. Google will retain ownership of its content, AI models and related data. Google said the capacity is intended to meet demand for Gemini Enterprise, its AI product suite for large businesses.
SpaceX IPO Targets $135 Per Share with June 12 Trading Start
SpaceX is targeting a $135 per-share IPO price and plans to raise about $75 billion through the offering. The proposed valuation is around $1.75 trillion to $1.8 trillion, making it one of the largest IPOs ever if completed at those levels. Trading is expected to start on June 12.
The IPO is reportedly already oversubscribed, with investor orders exceeding available shares soon after marketing began. Underwriters for the offering have reportedly been instructed not to accept subscription orders from investors in mainland China and Hong Kong, including private banking clients. The restriction is tied to regulatory and compliance concerns around U.S. limits on critical technology exports.
SpaceX is using a rare fixed-price IPO structure rather than a normal price range. This means investors are being shown a target price of $135 before final pricing, instead of a range that may be adjusted during the roadshow.
S&P 500 Eligibility Requires 12-Month Wait After IPO
S&P Dow Jones Indices said it will not change its rules to fast-track mega-cap companies such as SpaceX into the S&P 500. SpaceX would still need to wait at least 12 months after its IPO before being considered for inclusion. The index provider will keep existing requirements covering financial viability, seasoning period and minimum investable weight factor. Companies must have positive GAAP net income in the most recent quarter and across the latest four quarters. At least 10% of shares must also be publicly tradable.
The decision means SpaceX's earliest possible S&P 500 eligibility would be around June 2027, assuming it meets all requirements.
SpaceX Reports $2.5B AI Operating Loss on $818M Q1 Revenue
SpaceX's AI spending has grown sharply. The company reported first-quarter capital expenditures of $10.1 billion, more than double the prior year, with $7.7 billion tied to AI. Its AI segment posted an operating loss of $2.5 billion on $818 million in revenue during the quarter.
Alphabet has already benefited from its earlier SpaceX investment. Google invested when SpaceX was valued near $12 billion in 2015, while the IPO is now targeting a valuation above $1.75 trillion.
FAQ
What is the value of the Google-SpaceX cloud compute agreement?
Google will pay SpaceX $920 million per month from October 2026 through June 2029 for access to about 110,000 Nvidia GPUs and related components hosted in SpaceX data centers.
When does SpaceX plan to begin trading after its IPO?
SpaceX trading is expected to start on June 12. The company is targeting a $135 per-share IPO price and plans to raise about $75 billion at a proposed valuation of $1.75 trillion to $1.8 trillion.
When can SpaceX be added to the S&P 500 index?
S&P Dow Jones Indices said SpaceX would need to wait at least 12 months after its IPO before being considered for inclusion. The earliest possible eligibility would be around June 2027, assuming the company meets all requirements including positive GAAP net income.
