With xAI barely using any compute capacity, its parent company, SpaceX, is now aggressively lending out computing resources of the Colossus 1 data center to monetize its heretofore idle resources, all in a bid to improve its IPO-related prospects.
As a case in point, SpaceX has just inked an agreement to furnish Google with scarce computing resources after recently inking a similar agreement with Anthropic.
SpaceX will furnish Google with "110,000 NVIDIA GPUs, CPUs, memory, and other related components," with the agreement capable of being canceled by either party on a 90-day notice
SpaceX has just filed a disclosure with the SEC, notifying the public at large that it has just signed a Cloud Service Agreement with Google, whereby it will provide a compute capacity equivalent to "110,000 NVIDIA GPUs, CPUs, memory, and other related components" to Google for a consideration of $920 million per month.
The agreement is effective from October 2026 through June 2029, with either party retaining the initiative to cancel the agreement by providing a 90 days' notice.
This comes as SpaceX inked a similar agreement with Anthropic recently, providing access to "220,000 NVIDIA GPUs (including H100s, H200s, GB200s, and others)," all for a consideration of $1.25 billion per month or $15 billion per year, with the agreement running through May 2029, and again cancelable at a 90 days' notice.
Of course, the question arises: why is SpaceX leasing out its compute capacity when xAI's Grok is still in the running for AI model supremacy. Well, as per anecdotal chatter, xAI was apparently unable to effectively train Grok on the mish-mash architecture of Colossus 1, which spans an eclectic mix of H100, H200, and GB200 GPUs, forcing xAI to switch its training functions to the Colossus 2 data center. Talk about poor design planning.
SpaceX is, therefore, trying to monetize xAI's poor design decisions by inking disparate cloud agreements with various AI-enabling entities.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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