If SpaceX fails to deliver access to Nvidia Corp. chips as part of the deal by Sept. 30, Google has the right to terminate the contract, with a one-month grace period, the filing shows. <\/p>\n\n\n\n
A Google Cloud spokesperson said the deal would help the company meet demand for its AI services. It’s the second such agreement with an AI competitor in a matter of weeks.<\/p>\n\n\n\n
In a recent earnings report, Alphabet said Google Cloud\u2019s backlog, the measure of contracted work that hasn\u2019t been recorded as revenue yet, nearly doubled<\/a>\u00a0from the prior quarter to more than $460 billion.<\/p>\n\n\n\n \u201cThis is a short-term, timely agreement 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,\u201d the Google spokesperson said in a statement.<\/p>\n\n\n\n SpaceX previously\u00a0signed a similar agreement<\/a>\u00a0with Anthropic PBC. The Musk-led company, through its xAI subsidiary, has been looking to shore up revenue and transform its AI business into a compute infrastructure provider.<\/p>\n\n\n\n This is the key business the company has been touting as part of its initial public offering.<\/p>\n\n\n\n Although xAI has\u00a0fallen behind on coding<\/a>, it is betting that its edge is in data centre infrastructure, which the three-year-old business has built in Memphis, Tennessee, and is now expanding in Mississippi.<\/p>\n\n\n\n The contract gives Google access to 110,000 of Nvidia\u2019s graphics processing unit chips, as well as central processing unit chips, memory chips and other related components.<\/p>\n\n\n\n Based on the capacity of Nvidia\u2019s H200 chips, that may represent well over 100 megawatts of computing power \u2014 or enough power to energise 75,000 homes at any given moment.<\/p>\n\n\n\n The relationship between Google and SpaceX is at once collaborative and competitive. <\/p>\n\n\n\n Earlier this year, SpaceX disclosed that Google LLC owned a 6.11% stake in the company at the end of 2025.<\/p>\n\n\n\n Following the\u00a0February merger of SpaceX<\/a>\u00a0with xAI, Musk\u2019s artificial intelligence and social media company, Google now likely owns roughly 5% of SpaceX, according to Bloomberg calculations.<\/p>\n\n\n\n The cloud deal isn\u2019t the only pact that Google and SpaceX have been engaged in talks over. The two companies had been\u00a0discussing<\/a>\u00a0launching the search company\u2019s test products for orbital data centres<\/p>\n\n\n\n This is according to a person familiar with the matter who spoke to Bloomberg in May. Google previously said it was exploring deals with other launch providers for what the company called\u00a0Project Suncatcher<\/a>.<\/p>\n\n\n\n Under the pact disclosed on Friday, either party also has the right to terminate the arrangement with 90 days\u2019 notice \u2014 the same feature as in Anthropic\u2019s deal.<\/p>\n\n\n\n SpaceX, through its AI arm, also has a deal with startup Cursor, which gives it the right to acquire the firm for $60 billion or pay $10 billion as a break-up fee.<\/p>\n\n\n\nGoogle buys stake in SpaceX<\/h2>\n\n\n\n
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