SpaceX inks 38.7 billion dollar computing power deal with Google

Straits Times Business reports that SpaceX has signed a multi-year computing power supply deal with Google Cloud, covering Starlink communications backbone and data centre capacity. The total value of the agreement is reported at 38.7 billion dollars, with a term of seven years. The deal also covers TPU and GPU capacity for AI training and inference workloads.

This is the second major compute deal SpaceX has signed with an AI-focused technology giant in recent weeks; last month a 25-billion-dollar, seven-year framework agreement was announced with Anthropic. Wall Street analysts argue these accords signal that SpaceX intends to step seriously into the cloud market built on Starlink and satellite infrastructure. For Google, the deal increases TPU capacity utilisation and tightens infrastructure lock-in in the AI competition.

With pre-IPO valuation debates around SpaceX continuing, the deal is expected to add roughly 5.5 billion dollars in annual revenue to the company's base. Asian technology stocks listed in Singapore and Hong Kong closed the week sharply lower, partly amid the SpaceX valuation debate. This is not investment advice.