Google Will Pay SpaceX $920 Million Per Month For Compute 11
Ahead of its upcoming IPO, SpaceX announced that Google will pay the company $920 million per month for access to roughly 110,000 Nvidia GPUs and related compute infrastructure. Google says the agreement is short-term "bridge capacity" to meet stronger-than-expected demand for Gemini Enterprise, while SpaceX is using deals like this and its Anthropic contract to bolster its pitch for a historic public offering. TechCrunch reports: The deal is similar in length and scope to the one SpaceX announced with Anthropic in late May. As part of that deal, Anthropic agreed to pay SpaceX $1.25 billion per month through 2029 to rent all the available compute from its Colossus 1 data center near Memphis, Tennessee that xAI -- now part of SpaceX -- originally built for its own artificial intelligence efforts.
Google's deal appears to be paying for roughly half the amount of compute that Anthropic has access to at Colossus 1. SpaceX didn't say which specific data center Google would be using. CEO Elon Musk has previously suggested his company would reserve the Colossus 2 data center for xAI. Anthropic was significantly limited in its compute capacity prior to its deal with SpaceX, raising usage limits on the same day the deal was announced. Google is in a very different position, with some estimates naming it as the world's largest single owner of AI compute.
[...] Also like the Anthropic deal, the agreement with Google includes a cancellation clause. Both SpaceX and Google have the option to terminate the agreement with 90 days notice after December 31, 2026. Google's access to the data center will ramp up "through September at a reduced fee," according to the filing. "If we fail to deliver access to the committed amount of GPUs by September 30, 2026, then following a one-month grace period, Google may immediately terminate the agreement or accept the number of GPUs provided" with a reduction in the monthly fees, it reads.
Google's deal appears to be paying for roughly half the amount of compute that Anthropic has access to at Colossus 1. SpaceX didn't say which specific data center Google would be using. CEO Elon Musk has previously suggested his company would reserve the Colossus 2 data center for xAI. Anthropic was significantly limited in its compute capacity prior to its deal with SpaceX, raising usage limits on the same day the deal was announced. Google is in a very different position, with some estimates naming it as the world's largest single owner of AI compute.
[...] Also like the Anthropic deal, the agreement with Google includes a cancellation clause. Both SpaceX and Google have the option to terminate the agreement with 90 days notice after December 31, 2026. Google's access to the data center will ramp up "through September at a reduced fee," according to the filing. "If we fail to deliver access to the committed amount of GPUs by September 30, 2026, then following a one-month grace period, Google may immediately terminate the agreement or accept the number of GPUs provided" with a reduction in the monthly fees, it reads.
What I'm reading (Score:3)
Sounds like Musk bought a shitload of GPUs that he doesn't need, because nobody is using Grok besides idiots on Twitter to make "sick memes."
If they have all those GPUs energized and can afford to lease them to their competition, that just tells us nobody is using them.
Well.. Okay then... (Score:2)
Not sure that giving money to a third party to make your core product experience worse is the best of ideas. Google has the cash to see how it turns out, no question about it.
I am also very skeptical that there is any path to make the costs for LLM-based search the same as traditional search. I don't think Google can charge much more for advertising services either.
Of course, my bias is that people want predictable results when interacting with a search engine. Maybe I am wrong about that.
Too lazy to read IPO ... (Score:2)
So Tesla is not a car company, it is an AI company, and Tesla is part of SpaceX, hence the compute contract?
Viktor the new mongodb footer ad? (Score:2)
I’m getting a harassing advertisement at the bottom of every slash that page for Victor. I’m pro ads to support this site , but this is annoying and harassing.
how does one create an AdGuard rule that will actually work across/thought to kill this ad?
Re: (Score:2)
Lucky you!
I'm told that frisky cougars in neighborhood are wanting me to visit them.
I don't want to leave my basement.
Re: (Score:2)
Full uBlock Origin on Firefox seems to take care of it. Firefox is now the only browser capable of running uBlock Origin.
Re: (Score:2)
You just need to wait for updates. I got the ads for a couple of days, but now the uBlock Origin blocklists have been updated again to block them.
+$8000 per GPU per month. (Score:2)
That should be enough to cover the electricity bill and get a100% ROI within 6 months.
I hope Dr. Forbin has stock options (Score:2)
Too soon to welcome our new Colossus [wikipedia.org] overlord?
[Spoiler: It doesn't end well for humanity.]