“.. So now Google and Anthropic pay rent on the hardware Grok couldn't use, and that rent is the AI revenue story SpaceX takes public on Thursday.”
Hedgie (@HedgieMarkets)
🦔Google signed a deal to pay SpaceX $920 million a month for access to 110,000 Nvidia GPUs at SpaceX data centers. The contract runs October 2026 through June 2029, roughly $30 billion total. Google called it bridge capacity for surging Gemini Enterprise demand. SpaceX signed a similar deal with Anthropic last month, $1.25 billion a month through 2029 for all the compute at its Colossus 1 facility in Memphis.
Both contracts include 90-day cancellation clauses after December 2026. SpaceX goes public Thursday.
My Take
Google has more AI compute than anyone on earth and they still had to go to SpaceX for 110,000 GPUs. Their own buildout can't keep up with demand for Gemini Enterprise. They've committed $180 billion in capex this year and sold $80 billion in stock to fund more of it. And they still came up short.
This is the second deal like this in a month. Anthropic already signed for $1.25 billion a month at Colossus 1. Together those two deals put about $26 billion a year on SpaceX's books, right before an IPO where Goldman needs to justify a $1.75 trillion valuation on $322 billion in projected AI revenue. xAI built those data centers for Grok and lost $6.4 billion last year. So now Google and Anthropic pay rent on the hardware Grok couldn't use, and that rent is the AI revenue story SpaceX takes public on Thursday. I've tried to find where this stops being circular and I can't.
Hedgie🤗
— https://nitter.net/HedgieMarkets/status/2063314205185310875#m