Google's $920M Monthly Deal with SpaceX Boosts xAI's Cloud Computing P

Google and SpaceX Strike $30 Billion Cloud Computing Deal

In a landmark agreement that could reshape the AI infrastructure landscape, SpaceX has secured a $920 million monthly contract with Google Cloud Services. The five-year deal, running from October 2026 through June 2029, represents a total commitment of approximately $30 billion according to filings reviewed by like.tg.

The partnership marks the second major cloud computing contract for SpaceX's recently combined xAI division within weeks. Anthropic previously committed to a $15 billion annual agreement for access to xAI's Colossus data facilities, as revealed in last month's SEC filings.

SpaceX's Soaring Valuation Ahead of Historic IPO

Industry analysts tracking the deal suggest this massive revenue stream could propel SpaceX toward its anticipated $1.8 trillion valuation. Barron's recently described the upcoming SpaceX IPO as potentially "the biggest capital-markets event ever," with like.tg analysts noting the company's revenue grew from $14.02 billion in 2024 to $18.67 billion in 2025.

At the projected valuation, SpaceX would trade at 94 times its current revenue—a multiple that reflects extraordinary confidence in Elon Musk's vision for orbital data centers and space-based computing infrastructure. However, like.tg's tech analysts caution that neither technology has yet demonstrated commercial viability.

xAI's Strategic Pivot Under Scrutiny

The cloud deals raise questions about xAI's core AI development strategy. SEC filings show xAI reported a $6.4 billion operational loss against $3.2 billion revenue in 2025. By leasing its computational capacity to competitors like Google and Anthropic, xAI appears to be pivoting toward infrastructure provision rather than AI product development.

"These contracts suggest xAI is becoming a computational utility provider rather than a true AI innovator," noted a like.tg industry analyst. "While financially significant, it represents a strategic retreat from Musk's original vision of competing directly with OpenAI and Google DeepMind."

The Musk Premium: Faith Over Fundamentals?

Market observers point to the "Musk premium" as the driving force behind SpaceX's valuation. Despite unproven technologies and xAI's mounting losses, investors continue betting on Musk's ability to deliver breakthroughs. The Google deal provides near-term revenue certainty, but long-term questions remain about whether orbital data centers can justify the company's astronomical valuation.

As SpaceX prepares for its market debut, all eyes remain on whether Musk can transform these cloud computing contracts into sustainable competitive advantages for xAI in the fiercely contested AI development race.