SpaceX has struck a multi-million-dollar deal with tech giant Google, agreeing to provide vast computing power worth $920 million per month for the next three years. This partnership comes just as SpaceX prepares for its initial public offering (IPO), raising eyebrows over the astronomical costs of AI research.

The agreement is reminiscent of another blockbuster deal SpaceX sealed with Anthropic last year, signaling a fierce competition among tech giants to secure access to cutting-edge computing resources. With Google already being flagged as the world's largest owner of AI compute, this move could cement its dominance in the sector.

Elon Musk’s company seems keen on reserving specific data centres for strategic purposes; Colossus 2 is earmarked for internal use by xAI, now part of SpaceX. However, Google’s access to these resources appears more limited compared to Anthropic's deal terms.

In a statement, a Google representative attributed the surge in demand to the launch of its Gemini Enterprise platform. While it highlights unexpected customer interest, it comes at a hefty price for the space industry, which is already embroiled in a spending spree estimated to reach $180 billion this year.