SpaceX signed a $920 million monthly compute-leasing deal with Alphabet, granting access to roughly 110,000 Nvidia GPUs across its data centers through mid-2029. The agreement, finalized days before SpaceX's landmark public offering, locks in significant computing capacity for the aerospace company's AI division.

Under the terms, capacity ramps to full rate by September 2026 at a reduced fee. The contract includes an exit clause allowing Google to terminate immediately if SpaceX fails to deliver the committed GPU count by that deadline. Following 2026, either party may exit the agreement with 90 days' notice.

SpaceX's IPO prospectus reveals financial strain within its AI division, which recorded an operating loss of $2.5 billion in the last quarter on revenue of $818 million. During the same period, the company reported total capital expenditures of $10.1 billion, with $7.7 billion specifically allocated to AI infrastructure.

Financial Performance and Projections

SpaceX is targeting a valuation north of $1.75 trillion for its imminent listing. Co-lead underwriter Morgan Stanley projects revenue could reach $3.4 trillion by 2040, with the AI division contributing up to $190 billion by 2030. However, NYU finance professor Aswath Damodaran values SpaceX closer to $1.3 trillion, criticizing the AI market size projections as unrealistic.

Competitive Landscape and Strategic Moves

SpaceX has also entered a separate compute capacity deal with Anthropic at its Colossus 1 facility in Memphis. By entering the infrastructure leasing market, SpaceX competes directly with neocloud providers such as CoreWeave and Nebius. Shares of these competitors fell sharply during a broader tech selloff but partially recovered following the announcement.

The terrestrial compute deal coincides with reports that Google and SpaceX are in separate talks to develop orbital data centers. Google reportedly plans prototype satellite launches by 2027 under its Project Suncatcher initiative. Additionally, SpaceX has reportedly barred Hong Kong and mainland China investors from its IPO, citing U.S. International Traffic in Arms Regulations. Full exercise of the underwriters' overallotment option could add approximately $11.25 billion to the offering.