Google Will Pay SpaceX $920 Million A Month To Use xAI's Data Centers
The company needs extra computing power for Gemini Enterprise.
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Google has just signed a $30 billion AI deal with SpaceX, which owns Elon Musk's xAI. According to a SpaceX filing with the Securities and Exchange Commission, it will receive $920 million a month from Google in exchange for computing power from xAI's data centers, starting in October this year until June 2029.
The agreement will give Google access to 110,000 NVIDIA GPUs, as well as CPUs and memory. SpaceX wrote that if it fails to deliver access to that number of GPUS by September this year, Google could either terminate their deal immediately or accept the number of GPUs provided at a reduced payment rate after a one-month grace period.
Since Google has its own global network of data centers and continues to build more, you may be wondering why it has to pay SpaceX for...
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