Google will get access to 110,000 GPUs as part of a new partnership with Musk’s company

Google signed a large-scale strategic agreement with SpaceX, which is owned by Elon Musk. Under the terms of the $30 billion deal, the search giant will get emergency access to AI cloud resources to scale Gemini Enterprise’s own AI services.

Details of the agreement

According to documents filed with the US Securities and Exchange Commission (SEC), Google has agreed to use the computing power of the ultra-modern data centers of xAI, a startup also owned by Elon Musk. To cope with the enormous demand from the business side, Google uses a ready-made third-party technology base to ensure a stable and smooth integration of deep machine learning systems.

Technical characteristics of the agreement

Google is buying not just virtual power, but access to a critical, high-density elemental base that enables the functioning of machine vision systems and large language models. Partnership includes access to the following resources:

• Number of GPUs: 110 thousand NVIDIA graphics processors.
• Additional components: full facilitation of access to high-performance central processing units (CPUs) and fast physical memory of AI data centers.

Special nuances and protective conditions

The text of the SEC document contains a strict insurance disclaimer. If SpaceX is unable to provide the declared pool of 110,000 operational GPU chips by September of this year, Google reserves the legal right to immediately cancel the contractual obligations. As an alternative, the search giant can agree to a reduced supply of computing resources, which will proportionally reduce the amount of regular deductions. The scenario comes into effect after a grace period of one month.

Terms and question price

Financially and temporally, the agreement is divided into the following points:

• Start of the contract: October of the current year.
• Expiration: June 2029.
• Financial equivalent of monthly expenses: Google’s regular tranche to SpaceX will amount to a significant $920 million.

Google is positioning this large-scale project as a temporary operational solution designed to compensate for the delay in the construction of its own megadata centers, while the demand for intelligent assistants Gemini Enterprise from representatives of large corporate businesses is growing at an explosive pace.