Elon Musk Announces Google AI Infrastructure Deal Days Ahead of SpaceX IPO

Breitbart ^ | 06/08/2026 | Lucas Nolan

[DFG]

Elon Musk’s SpaceX has secured a massive infrastructure agreement with Google just days before its planned IPO, with the search giant agreeing to pay $920 million per month for AI computing capacity.

CNBC reports that according to a regulatory filing, Google will utilize approximately 110,000 Nvidia graphics processing units along with central processors, memory, and additional components located within SpaceX data center facilities. The contract runs from October 2026 through June 2029 at the full monthly rate of nearly a billion dollars a month, with capacity scaling up through September at a discounted fee.

A Google Cloud spokesperson communicated to CNBC via email that the arrangement was established “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 launched Gemini Enterprise, its subscription offering for large organizations, in October of last year.

This Google contract represents the second major infrastructure agreement disclosed by SpaceX since completing its February merger with xAI, Elon Musk’s artificial intelligence venture, in a deal that established a $1.25 trillion valuation for the combined organization. During May, Anthropic revealed plans to utilize all available compute capacity at SpaceX’s Colossus 1 data center located in Memphis, Tennessee. Breitbart News previously reported that Musk has caused confusion over this deal due to publishing terms different than those in the IPO documents.

Google has realized extraordinary returns from its early investment in SpaceX. When Google invested in 2015, Musk’s aerospace and technology company carried a valuation of merely $12 billion. SpaceX now targets a public market valuation exceeding $1.75 trillion in its forthcoming offering scheduled for Friday.

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TOPICS: Business/Economy
KEYWORDS: donate; google; musk; nvidia; spacex

[Uncle Miltie]

There was an article about this yesterday that I couldn’t understand because it left unclear who the customer was and who the provider was.

The supplicant who will pay billions for more compute is Google, and the seller in the drivers seat holding all the nvidia chips and earning the revenue is Musk.

Yesterday’s article was so obtuse, I’ll bet most people went away with the opposite impression.

[Mark]

Bookmark

[pierrem15]

It's a bit of a circular investment: Google is a major shareholder in SpaceX, so announcing this deal will boost the value of Google's holdings in SpaceX when it goes public, probably more than offsetting the cost.

Look closely at that: a handful of individuals basically have quasi monopoly control over capital and invest in each other's companies to cause asset inflation. It's the same with Nvidia, which loans cash to other companies buying its chips and then books the sales paid for with its own cash.

Maybe we'll get some decent orbital infrastructure and computing power out of this and fund new SpaceX tech, but where is the Hayekian pricing mechanism? And more importantly, What's in it for the rest of us mere mortals? Where are the jobs for Main Street? The infrastructure investment in bridges, roads, etc.? Trillions of dollars are flowing into AI, but what exactly will that provide for the rest of the economy? And if the bubble goes bust, won't the rest of us get saddled with the

[ransomnote]

In the Bloggers & Personal forum, on a thread titled Elon Musk Announces Google AI Infrastructure Deal Days Ahead of SpaceX IPO, Uncle Miltie wrote:

There was an article about this yesterday that I couldn’t understand because it left unclear who the customer was and who the provider was.

The supplicant who will pay billions for more compute is Google, and the seller in the drivers seat holding all the nvidia chips and earning the revenue is Musk.

Yesterday’s article was so obtuse, I’ll bet most people went away with the opposite impression.

Thank you for clarifying for the rest of us. I don't think the MSM can 'handle the truth' as they hate Musk so hard.

[ckilmer]

the big driver of the stock market last week was the jobs report.

Expected jobs number was something like 75k. the real number was something like 165k. Under biden all jobs numbers were subsequently revised down. Under trump this year all earlier jobs numbers have subsequently been revised up.

[Vendome]

$920 million per month for AI computing capacity

That’s God Mode Money....