According to Breitbart, the deal, disclosed in a regulatory filing, commits Google to pay $920 million per month for access to AI computing capacity housed in SpaceX data centers. The agreement will see Google tap roughly 110,000 Nvidia graphics processing units, along with central processors, memory, and related hardware, under a contract that runs at full price from October 2026 through June 2029, following a ramp-up period at discounted rates through September.
As reported by Breitbart, Google Cloud confirmed the arrangement in an email to CNBC, framing the massive outlay as a response to surging demand for its flagship AI platform. A Google Cloud spokesperson said the contract was put in place “to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected,” noting that Gemini Enterprise, a subscription service for large organizations, debuted in October of last year.
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The Google pact marks the second major infrastructure deal SpaceX has unveiled since its February merger with Musk’s AI venture xAI, a transaction that assigned the combined entity a towering $1.25 trillion valuation. In May, Anthropic announced plans to use all available compute at SpaceX’s Colossus 1 data center in Memphis, Tennessee, though Musk has drawn scrutiny for sowing confusion by circulating deal terms that differ from those in the IPO filings, as Breitbart News has previously detailed.
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For Google, the latest contract underscores the staggering payoff from its early bet on Musk’s company. When the tech giant first invested in SpaceX in 2015, the firm was valued at just $12 billion; now, SpaceX is targeting a public market valuation north of $1.75 trillion in an offering slated for Friday, a trajectory that reflects both market enthusiasm and the premium investors are willing to pay for AI-linked assets.
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Musk, for his part, appears intent on showcasing SpaceX as an AI powerhouse to justify the enormous sums poured into its data center buildout, particularly in the Memphis region. In its prospectus, SpaceX reported first-quarter capital expenditures of $10.1 billion, more than double the figure from a year earlier, with $7.7 billion of that total funneled into artificial intelligence infrastructure.
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Yet one of the central flashpoints surrounding the IPO is Musk’s lofty $1.75 trillion valuation target, which some analysts view as detached from underlying fundamentals. Breitbart News has noted that Morningstar, the financial services firm, pegs SpaceX’s value at roughly half that level, and its analysts have been blunt about their skepticism regarding the company’s AI positioning.
“At a $1.75 trillion valuation with the company booking revenue of $18.67 billion in 2025, SpaceX would trade at a trailing price-to-revenue multiple of 93.7 times,” Morningstar warned, arguing that such a multiple stretches credulity even in a frothy AI market. Morningstar equity analyst Nicolas Owens was particularly dismissive of Musk’s AI brand, stating: “We don’t see Grok as one of the leading AI labs today,” and adding: “We think the company has been significantly overvalued and investors will have opportunities to buy the stock at more attractive levels after the IPO.”
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For many buyers, however, the offering is as much a referendum on Musk himself as on SpaceX’s balance sheet or product lineup. His history of turning Tesla into a retail investor phenomenon and his ability to rally online supporters suggest that demand for SpaceX shares could be driven as much by personality and cultural influence as by traditional valuation metrics.
The broader context is a market frenzy in which AI-related IPOs are projected to raise as much as $4 trillion in the near term, a tidal wave of capital that is reshaping the American economy and concentrating power in a handful of tech titans. Breitbart News social media director and author Wynton Hall has argued in his instant bestseller that conservatives must craft a strategy for engaging with AI that avoids the ideological and legal “landmines” emerging around the technology, while still harnessing its economic potential for innovation, prosperity, and individual liberty.
