SpaceX's Google AI Pact Is Worth Up to $29 Billion, but Investors Shouldn't Bank on It

Published October 8, 2026 · Category: Finance

Overview

Starting this month, Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) will fork over $920 million per month to Space Exploration Technologies (NASDAQ: SPCX) for access to compute capacity at one of its Colossus data centers. The contract, signed back in June, is one of several major deals SpaceX made for its AI infrastructure. Management expects to significantly ramp up its AI revenue as it builds new data centers.

But there are important terms built into SpaceX's contracts that investors shouldn't take lightly. And while Alphabet could pay a total of $29 billion over 32 months to Elon Musk's company, investors shouldn't bank on SpaceX receiving the full amount. Here's why.

Image source: The Motley Fool.

Details

Continue reading

Source

Originally published at www.fool.com.

Related Articles

• The options market is reminding investors there’s a cure for rising bond yields — higher yields
• We're buying the dip in a stock being punished for something it's actually insulated from
• Why a Starbucks takeover of Chipotle would — and wouldn't — make sense for both companies