SPACEX SIGNS $30B AI COMPUTING DEAL WITH GOOGLE

The agreement, detailed in an SEC filing, marks a significant expansion of SpaceX's business beyond aerospace into cloud infrastructure. Google will use the computing capacity to support its Gemini Enterprise platform. The deal underscores the acute shortage of AI infrastructure across the tech industry. That one of the world's largest cloud providers requires external computing capacity from SpaceX—traditionally known for rockets and satellites—demonstrates how scarce and valuable GPU capacity has become. SpaceX is leveraging xAI's data centers for the arrangement, expanding the company's revenue streams ahead of a planned initial public offering. Wall Street analysts are modeling aggressive growth for SpaceX's AI division, with research projecting the segment could see 100 times revenue growth by 2030. Some analysts have valued the company at $1.8 trillion based on these projections. The computing arrangement reflects broader consolidation across the tech sector. Major cloud providers, chipmakers, and infrastructure companies are increasingly interdependent as demand for AI training and inference capacity continues to outpace supply. SpaceX has been preparing for an IPO in recent months, with this deal likely strengthening its valuation narrative by demonstrating diversified revenue potential beyond its established launch services business.