SpaceX has signed a cloud service agreement with Google to provide artificial intelligence compute capacity ahead of its planned IPO, adding another major revenue source tied to data center infrastructure.
Under the agreement, Google will pay SpaceX $920 million per month from October 2026 through June 2029. The deal 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.
The contract follows a similar compute arrangement with Anthropic. 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. The deals add to investor attention around SpaceX’s AI infrastructure business as the company prepares for a public listing.
SpaceX IPO Demand Builds Before Nasdaq Debut
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.
The IPO is reportedly already oversubscribed, with investor orders exceeding available shares soon after marketing began. Trading is expected to start on June 12.
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.
Google Deal Expands AI Revenue Case
The Google agreement strengthens SpaceX’s pitch that its data center and AI infrastructure can generate large recurring revenue. The company said 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. The deal places SpaceX in competition with AI infrastructure providers such as CoreWeave and Nebius, while also competing with Google in areas including connectivity and artificial intelligence.
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.
S&P 500 Entry Will Not Be Fast-Tracked
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. That means 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.
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.
The new Google compute deal gives SpaceX another large contract before its market debut. Investors are now weighing its launch, Starlink, and AI infrastructure businesses against its high spending, data center losses and delayed index eligibility.
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