Quick Read – Google signed a $920 million monthly deal with SpaceX as a bridge to meet surging AI compute demand into 2029. – The AI bottleneck has expanded beyond chips to real estate and power, with Meta reportedly building data centers in tents to keep pace. – The deal hands…
aceX a revenue driver just before its IPO, while Google’s 27.5x trailing P/E may still undervalue its AI growth potential. – Don’t wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now
The AI boom is giving investors no shortage of curveballs. In a rather surprising move, Alphabet’s (NASDAQ:GOOGL) Google inked a deal that’ll see Elon Musk’s SpaceX (SPCX) receive $920 million per month to rent its AI compute capacity. The move, which is slated to last between October 2026 and June 2029, is more of a “bridging” solution that will help Google feed the insatiable demand for its own AI.
Any way you look at it, though, the announcement seems to be a huge deal for SpaceX as it gears up for its IPO to land later this week. Perhaps renting out facilities with tons (around 110,000) Nvidia (NASDAQ:NVDA) GPUs will be incredibly lucrative over the next three years or so. For SpaceX, there’s just another bullish revenue driver to consider before the moment to participate in what will be the largest public market debut.