Google Just Started Paying SpaceX $920 Million a Month. Here's What That's Worth per Share.

SpaceX finalized a significant compute rental contract with Alphabet's Google, paying the tech giant $920 million monthly for Nvidia GPU access from October 2026 to June 2029. With 13.2 billion shares outstanding, this deal translates to around $11 billion in annual revenue for Google and approximately $30 billion over the 33-month term, amounting to $0.07 per share monthly, $0.83 per share annually, and $2.27 per share throughout the contract.

SpaceX's market capitalization stands at $2.2 trillion as of October 12, making the $11 billion annual sales amount relatively minor compared to its total value. Nonetheless, this deal represents a substantial increase in SpaceX's yearly revenue, potentially boosting it by over 50% from its $20.7 billion reported revenue over the past year.

The agreement with Google is just one of SpaceX's lucrative contracts; it also signed a deal with Anthropic potentially worth up to $84.5 billion through May 2029. Investors should note that SpaceX's compute-rental contracts contain 90-day mutual cancellation clauses, allowing either party to terminate with 90 days' notice after an initial period.

While these deals do not guarantee long-term income, they indicate that SpaceX's AI segment could become a profitable aspect of its business, potentially justifying the premium valuation of its stock.