Google has been one of the most dominant and influential companies of the past two decades. Its multi-industry presence makes it nearly impossible for any competitor to surpass them once Google has entered the race. The same sentiment applies to AI, where Google’s Gemini has become one of the best and most popular language models since its launch, outperforming ChatGPT, Claude, and even Grok. However, this gap is about to widen significantly, as Google has just signed a brand-new deal with SpaceX to tenfold Gemini’s AI cloud computing power. The announcement came in early June 2026 and involves SpaceX renting out significant data centers, incorporating XAI’s infrastructure, for an astonishing $920 million per month for the upcomming 32 moths.

The computing deal came as a surprise for corporate giants. CEO Elon Musk has silently merged XAI and SpaceX back in February, combining the two entities and now valuing them at $1.25 trillion, technically without anyone noticing. While the unification has had some financial motivations, the real reason is faar more complicated than one would expect it, and if you wish to learn more about it click here.

Google began facing capacity constraints, however, as every major organization builds bigger and bigger AI and data centers, this has become less viable for Google, especially after their own extensive contractions. To navigate space and building limitations, Sundar Pichai devised a solution that would not require them to outpace other companies in constructing new data centers, instead, they will utilize those built by them. This is a very strategic move, as it enables Google to facilitate the XAI’s upcoming Space data centers and further expand its computing power. However, this isn’t just a simple agreement, as it offers both tech giants the opportunity for a longstanding business relationship.

SpaceX’s progress is so rapid that it has to be measured in days instead of months or years, making collaboration with the fastest-evolving aerospace company essential for Google to stay at the forefront of the AI race.

Starting in October 2026, SpaceX will provide over 110 thousand NVIDIA GPUs, along with related infrastructure—CPU, memory, etc.—until the deal ends in 2029 or gets extended, which is very likely if Google wishes to maintain its leading position in AI. However, if Musk fails to deliver the GPU count by September 2026, Google will automatically terminate the contract. The broader implications are also predicted to have a significant effects. NVIDIA’s production line is now overwhelmed with pre-orders, further underscoring its dominance. NVIDIA’s stock, currently averaging between $180 and $210, is also expected to skyrocket and potentially triple within the next three years, attracting more investors than ever before, and the implications of this are simply unknown.