A total of $70 billion! SpaceX has successively signed a large contract for "computing power rental" with Anthropic and Alphabet Inc. Class C (GOOGL.US), with an ARR as high as $26 billion.

SpaceX is currently transforming its massive computing infrastructure into a high-speed cash machine. In the eve of its upcoming listing on the US stock market, SpaceX, owned by Musk, has successively signed huge computing leasing agreements with Anthropic and Alphabet Inc. Class C, with the two contracts totaling over $70 billion, generating an annual revenue of $26 billion, injecting strong fuel into its IPO narrative. On June 6th, Reuters reported that on June 5th, SpaceX announced a multi-year cloud services agreement with Alphabet Inc. Class C (GOOGL.US). According to regulatory filings, Alphabet Inc. Class C will pay SpaceX $920 million per month from October of this year through June 2029 to access approximately 110,000 NVIDIA Corporation GPUs and related computing resources; prior to that, Alphabet Inc. Class C will pay at a lower rate during the ramp-up phase. Prior to this, Anthropic announced in May that it would lease most of the computing power at SpaceX's Colossus 1 data center in Tennessee at a price of $1.25 billion per month, with an initial commitment period of six months. Combining these two agreements, SpaceX could generate approximately $2.17 billion in revenue per month from its computing leasing business, with an annual scale of about $26 billion; if both contracts are executed until their expiration dates, the total contract value exceeds $70 billion. These transactions directly strengthen SpaceX's AI growth story as it races towards an IPO. SpaceX plans to go public next week with a target fundraising size of $75 billion, potentially setting a record for the largest IPO in US stock market history. The explosive growth of its computing leasing business provides quantifiable high-visibility income, but at the same time, concerns about SpaceX's own AI research and development capabilities are quietly intensifying. Alphabet Inc. Class C deal: $920 million per month, locked in until 2029 According to regulatory filings submitted by SpaceX, the cloud services agreement with Alphabet Inc. Class C was officially signed on June 5, 2026. The agreement stipulates that Alphabet Inc. Class C will use computing power at a lower rate until September of this year during the ramp-up phase; starting from October until June 2029, will pay a fixed $920 million each month. The provided computing resources include approximately 110,000 NVIDIA Corporation GPUs, CPUs, memory, and other related components. The agreement also includes protective clauses: if SpaceX fails to provide the agreed number of GPUs by September 30, after a one-month grace period, Alphabet Inc. Class C can immediately terminate the agreement or choose to accept the actual number of GPUs provided and proportionally reduce the monthly fee. Additionally, after December 31, 2026, either party can terminate the agreement with a 90-day notice. Alphabet Inc. Class C will retain ownership of its content, AI models, and related data, as well as all intellectual property rights. Analysis suggests that the disclosed $70 billion total contract value for SpaceX depends to a certain extent on whether both parties choose to fulfill the agreement until its expiration date. The computing power agreement between Anthropic and SpaceX was announced in May of this year, with Anthropic leasing most of the computing power at SpaceX's Colossus 1 facility for $1.25 billion per month. The facility is located in Memphis, Tennessee, with over 220,000 NVIDIA Corporation processors, providing 300 megawatt of additional computing power for Claude Chat Siasun Robot & Automation, and will be delivered within a month. Anthropic's big deal also has hidden implications According to tech media The Information, behind this deal is an unknown competitive rivalry. xAI has long been tracking and attempting to develop its own products using Anthropic's technology, including continued use of its model outputs through various means even after Anthropic cut off access. According to sources, xAI conducted a distillation project for several months, directly using Claude's response results to train its own programming models. In January of this year, xAI co-founder Tony Wu announced to employees that Anthropic had cut off access, but some xAI engineers subsequently continued to access Claude through personal accounts until Anthropic gradually shut down these accounts. Two sources revealed that xAI also accessed Anthropic's models through intermediary Blackbox AI, with the latest usage traceable to mid-May of this year. In a court testimony in May, Musk openly admitted that xAI had "partially" used OpenAI models to train Grok, and described such practices as common in the industry. However, neither he nor the company disclosed the extent to which xAI used Anthropic technology, as well as the various methods employed by employees to obtain direct access. xAI's hardware planning mistakes drive SpaceX's computing leasing business The Information's report reveals that xAI is facing a series of serious challenges in AI research and development, creating tension with the AI growth story SpaceX is presenting to Wall Street. On the personnel front, xAI has undergone massive upheaval: a large number of core personnel, including eight co-founders, have left, and the engineering team has been cut down. According to reports, as of mid-May of this year, the number of pre-training team members at xAI was less than five, compared to over twenty a year ago. The project leader for Grok Code has changed at least four times in recent months, with the most recent, Beibin Li, leaving in May. In addition, an employee accidentally deleted core training data for AI programming products during a data migration process, resulting in the loss of two to three weeks of work. On the strategic front, Musk had previously mentioned plans to introduce Cursor and Mistral AI to fill critical technology gaps - Mistral for pre-training, Cursor for post-training. However, early contact with Mistral did not lead to formal cooperation: Mistral executives visited xAI headquarters in mid-April, but high-level talks were terminated a few weeks later; Mistral co-founder and engineer Devendra Chaplot joined xAI and left in May after only about a month. Cooperation with Cursor has deepened. In April of this year, SpaceX announced that it would open its infrastructure to Cursor to train its own model Composer, and obtained the option to acquire Cursor for $60 billion later this year, with a $10 billion breakup fee if they choose not to proceed. Cursor CEO Michael Truell is now a frequent visitor to xAI's office. According to The Information's report, a series of recent setbacks for xAI have raised questions about whether SpaceX will focus on its own AI research or its computing leasing business. However, Anthropic's payments to SpaceX have somewhat filled the financial gap of xAI, a deeply loss-making division that has led to significant losses for the overall company in the first quarter. However, behind SpaceX's rental of computing power is a reflection of xAI's own technological challenges. Sources revealed that xAI encountered serious obstacles when training the Grok model at the Colossus 1 data center - the facility had a mixed deployment of various architectures such as H100, H200, and GB200 GPUs, making it difficult to effectively advance training work, forcing xAI to migrate model training tasks to the Colossus 2 data center. It is this design flaw that has provided an opportunity for SpaceX's commercial layout. SpaceX is trying to turn xAI's legacy computing assets into a revenue source, by signing cloud service agreements with multiple AI-related companies to monetize the idle computing power of Colossus 1. However, SpaceX is highlighting the revenue from computing leasing as a core growth highlight for its upcoming IPO, but the rapid expansion of this business model has also raised doubts about its AI strategic positioning. Musk has repeatedly characterized the Anthropic agreement as a "short-term arrangement" on the xPlatform, stating "I think at some point we may need to take back the computing power." SpaceX also said in its IPO filing that the company is continuing to train the next generation of primary Grok models, but has not disclosed any release timetable. This article is republished from "Wall Street See", author: Dong Jing; GMTEight editor: Xu Wenqiang.