Key insights
- SpaceX and Google have signed a multi-year cloud service agreement where Google will pay SpaceX $920 million per month for compute capacity, including 110,000 Nvidia GPUs. This deal highlights increasing demand for specialized compute resources, particularly GPUs, which could benefit semiconductor companies like Nvidia and cloud infrastructure providers. While primarily a B2B deal, it signals strong growth in AI and cloud services, potentially boosting sentiment for tech-related equities.
June 5 (Reuters) - SpaceX said on Friday it has entered into a multi-year cloud service agreement with Alphabet's Google for access to compute capacity.
As part of the deal, Google will pay SpaceX $920 million per month from October this year to June 2029, with capacity ramping up through September at a reduced fee, Elon Musk's space venture said in a U.S. SEC filing.
The compute capacity provided includes about 110,000 Nvidia GPUS, CPUS, memory and other related components.
(Reporting by Juby Babu in Mexico City; Editing by Shilpi Majumdar)