Elon Musk’s space company SpaceX will collect $920 million from Google every month for rented computing power in the coming years.
Google needs the computing capacity for its artificial intelligence services. The agreement runs from October of this year until the end of June 2029. In a similar deal, AI company Anthropic will also purchase computing power from SpaceX for $1.25 billion per month in a multi-year deal.
Musk founded his own AI company xAI in SpaceX, for which several data centers were built. After the deal with Anthropic announced a few weeks ago, he explained that one of the data centers was sufficient for SpaceX’s AI activities. At xAI and now SpaceX, the AI chatbot Grok is being developed, which is less used than ChatGPT from OpenAI, Anthropic’s Claude and Google’s rival software Gemini.
SpaceX: Competition with competitor OpenAI
By renting urgently needed computing power to Anthropic and Google, Musk is also helping the companies compete with competitor OpenAI, against whom he has been feuding for years as a former co-founder. AI infrastructure is expensive. Google has announced capital investments of up to $190 billion this year alone, primarily in data centers.
SpaceX plans to go public next week and is aiming for a total valuation of $1.7 trillion and record revenue of $75 billion. SpaceX’s pure business figures are in stark contrast to the targeted stock market value – investors are more likely to pay for the hope of future success. Last year there were red figures of around $4.94 billion with sales of $18.67 billion. Just renting out the data centers will significantly improve these numbers.
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