Google to pay SpaceX $920 million a month for compute capacity at xAI data centers

Key points

• (L-R) Google CEO Sundar Pichai speaks with Tesla and SpaceX CEO Elon Musk as they arrive for the inauguration ceremony before Donald Trump is sworn in as the 47th US President in the US Capitol Rotunda in Washington, DC, on January 20, 2025. The Google agreement marks the second massive infrastructure deal announced by SpaceX following its merger in February with xAI, Elon Musk's artificial intelligence company, in a transaction that valued the combined entity at $1.25 trillion.
• Last month, Anthropic announced a deal to use all of SpaceX's compute capacity at its Colossus 1 data center in Memphis, Tennessee.
• A Google Cloud spokesperson told CNBC by email that the deal was made "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 introduced Gemini Enterprise — subscriptions for large businesses — in October....