SpaceX agreed to provide Google with access to roughly 110,000 Nvidia graphics processing units (GPUs) and other compute infrastructure in SpaceX\u2019s artificial intelligence data centers<\/a>.<\/p>\n In return for these services, Google has agreed to pay SpaceX $920 million per month from October of this year through June 2029.<\/p>\n If SpaceX fails to deliver this access by September of this year, Google will have the option to terminate the deal or accept access to fewer GPUs at a lower monthly cost.<\/p>\n Starting in 2027, either party can terminate the deal with 90 days\u2019 notice.<\/p>\n The agreement comes after SpaceX disclosed in its registration statement that Anthropic has agreed to a separate data center compute deal valued at $1.25 billion per month through May 2029.<\/p>\n Did Google and Anthropic just give investors 2.2 billion reasons to buy the SpaceX IPO?<\/p>\n SpaceX\u2019s AI unit is very important<\/p>\n SpaceX acquired its AI division earlier this year when it purchased SpaceX Founder Elon Musk\u2019s other company, xAI, valuing the business at $250 billion.<\/p>\n XAI includes the social media platform X, Grok AI intelligence, and data centers that currently provide 1 gigawatt of compute capacity, with additional power capacity available.<\/p>\n ]]> Image source: Getty Images.<\/p>\n SpaceX\u2019s<\/a> AI unit also has plans to build a large terafab facility with Tesla and Intel capable of building one terawatt of compute infrastructure, such as chips.<\/p>\n So far, the AI unit has been a drag on SpaceX. In 2025 and the first quarter of 2026, the AI unit had over $20 billion of capital expenditures.<\/p>\n In the first quarter of 2026, the AI unit generated an operating loss of nearly $2.5 billion.<\/p>\n Of course, this new data center revenue is a game changer. Assuming there are no disruptions in either of these deals, SpaceX will generate over $26 billion of revenue per year from the Anthropic and Google deals.<\/p>\n SpaceX reported total revenue of $18.7 billion in 2025.<\/p>\n The AI unit is driving much of SpaceX\u2019s $1.78 trillion valuation. SpaceX believes the AI unit has a total addressable market (TAM) of $26.5 trillion.<\/p>\n SpaceX also said in its registration statement that it eventually hopes to launch 100 gigawatts of compute capacity to space annually.<\/p>\n Does the new deal make the valuation more reasonable?<\/p>\n During SpaceX\u2019s roadshow, in which investment bankers market the IPO<\/a>, Goldman Sachs bankers have reportedly been telling potential investors that SpaceX\u2019s AI revenue will surge to $100 billion annually by 2030.<\/p>\n While that initially sounded outlandish, the Anthropic and Google deals certainly make this seem much more achievable.<\/p>\n In total, Goldman projects that SpaceX will generate $474 billion in revenue by 2030. Assuming this is true, the $1.78 trillion valuation means investors would be buying SpaceX at under four times 2030 revenue, which likely sounds pretty appealing.<\/p>\n However, keep in mind that the data center business is not easy to operate and requires significant and likely ongoing investment.<\/p>\n SpaceX<\/a> will likely need to build new data centers to hit $100 billion in revenue, as Anthropic alone reportedly gets access to over 300 megawatts of compute under its deal with SpaceX.<\/p>\n There are also questions about how long GPUs last, which could prove another area that requires more frequent capital investment than expected.<\/p>\n Most other data center companies are growing revenue rapidly, but remain unprofitable and need to take on significant debt to build data centers.<\/p>\n It\u2019s also possible that compute capacity won\u2019t be constrained forever. If it becomes more commoditized, that could erode pricing power.<\/p>\n So, while these new compute deals are significant, there are still many unknowns, and a lot can happen between now and 2030.<\/p>\n A wait-and-see approach is best<\/p>\n The Anthropic and Google deals make SpaceX more compelling, but I continue to recommend that investors remain on the sidelines initially.<\/p>\n SpaceX is only issuing about 4% of its public float in the IPO, and more shares will flood the market in the first six months as early investors and employees become eligible to sell their shares.<\/p>\n I think shares will likely be cheaper six months after the IPO, and investors will also be able to gather much more information about the company in the meantime.<\/p>\n Where to invest $1,000 right now<\/p>\n When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor\u2019s total average return is 941%* \u2014 a market-crushing outperformance compared to 206% for the S&P 500.<\/p>\n They just revealed what they believe are the 10 best stocks<\/a> for investors to buy right now, available when you joinStock Advisor.<\/p>\n See the stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of June 7, 2026. <\/p>\n Bram Berkowitz<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel, Nvidia, and Tesla. The Motley Fool has a disclosure policy<\/a>.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":"Key Points Google and Anthropic are expected to soon start paying SpaceX nearly $2.2 billion per month in…\n","protected":false},"author":2,"featured_media":65484,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[53,1320,1317,1316,1319,1318,1321,1324,835,1310],"class_list":["post-65483","post","type-post","status-publish","format-standard","has-post-thumbnail","category-anthropic","tag-anthropic","tag-futures","tag-index-market-quote","tag-index-market-quotes","tag-index-market-symbol","tag-index-market-symbols","tag-indices","tag-intc","tag-intel-corp","tag-the-globe-and-mail"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/65483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=65483"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/65483\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/65484"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=65483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=65483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=65483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Rocket](\"https:\/\/barchart-news-media-prod.aws.barchart.com\/FC\/1919321bd50eb176ff298becada68c37\/%3Furl%3Dhttps%253a%252f%252fcdn.content.foolcdn.com%252fimages%252f1umn9qeh%252fproduction%252f9574fe2d690ceb40c8d8126ad9407a8615f2a503-6000x4000.jpg%253fw%253d6000%2526h%253d4000%2526q%253d75%2526auto%253dformat%26amp%3Bw%3D700\")
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