SpaceX and Google Join Forces in Cloud Computing Pact
On June 5, 2026, it was revealed that Google has agreed to pay SpaceX $920 million per month for access to cloud computing resources. The contract runs from October 2026 through June 2029 and covers approximately 110,000 Nvidia graphics processing units (GPUs), along with CPUs, memory, and other hardware. SpaceX plans to have its server infrastructure fully operational by the end of September 2026. However, if the company fails to deliver the agreed number of GPUs by September 30, 2026, Google can terminate the agreement after a one-month grace period.
Anthropic Joins In, and the Cloud Market Shifts
In May 2026, Anthropic also signed a deal with SpaceX, committing to pay $1.25 billion monthly through May 2029. In return, Anthropic gains access to the Colossus and Colossus II data centers. The first Colossus facility houses over 220,000 Nvidia processors and is expected to provide Anthropic with an additional 300 megawatts of power. Combined, the contracts with Google and Anthropic will generate $2.17 billion per month for SpaceX—roughly $26 billion annually.
If neither deal is terminated early, their total value could exceed $70 billion. In the first quarter of 2026, Amazon held 28% of the global cloud infrastructure market, Microsoft 21%, and Google 14%. The three biggest cloud providers—Amazon, Microsoft, and Google—together control 67% of the public cloud. Meanwhile, neocloud companies account for about 5% of the overall cloud market, with five of them ranking among the top thirty cloud providers by infrastructure revenue.
SpaceX's artificial intelligence division generated $818 million in revenue during Q1 2026, but the company still posted an operating loss of $2.47 billion. Against this backdrop, SpaceX has scheduled its IPO for June 12, 2026, on the Nasdaq, aiming to sell $75 billion in shares at a valuation of roughly $1.75 trillion. For context, Saudi Aramco's 2019 IPO was valued at $1.7 trillion. Google's stake in SpaceX could be worth over $100 billion after the public offering.
John Dinsdale, lead analyst at Synergy Research Group, noted that the cloud computing market in the first quarter was 15 times larger than a decade ago and continues to grow by 35% annually.
He also emphasized that artificial intelligence will keep driving cloud adoption, opening up new use cases and boosting cloud providers' revenues. A Google spokesperson stated that Google Cloud and SpaceX have a long-standing partnership, which could point to fruitful collaboration ahead.
The SpaceX-Google agreement highlights the surging demand for cloud computing and AI resources, especially as technology evolves rapidly. Given the commitments from both sides, SpaceX may strengthen its market position, while Google continues to expand its cloud services footprint. This also underscores the importance of partnerships in the tech industry, where successful collaboration can yield significant financial gains for all involved.
In light of these significant cloud agreements, it's important to note the recent developments surrounding Anthropic's partnership with SpaceX. Musk has publicly denied claims about a massive monthly contract between the two companies, raising questions about the future of their collaboration and its potential impact on the cloud computing landscape.