Google Buys Compute Power From SpaceX in Unprecedented Deal

A Deal That Turns Heads

In a surprising move, Google has closed a deal to purchase computing capacity from SpaceX. The news, analyzed in depth by Ben Thompson at Stratechery, may seem odd at first glance but makes perfect sense when looking at the AI infrastructure race.

Why SpaceX?

SpaceX is more than just a rocket company. With the Starlink constellation and its ground data centers, Elon Musk's company has accumulated significant computing capacity. For Google, which needs ever more processing power to train and run its AI models, any additional compute source is welcome.

What It Means for NVIDIA

Interestingly, Thompson argues that both the Google-SpaceX deal and Broadcom's recent results are bullish signals for NVIDIA. If giants like Google are seeking alternative compute sources, it confirms that demand for AI chips remains insatiable. NVIDIA, as the dominant supplier, remains the biggest beneficiary.

The Bigger Picture

This deal reflects a broader trend: computing is becoming the most contested resource of the 21st century. Companies across every sector are stockpiling processing capacity as if it were oil — because, in a sense, that is exactly what AI has turned computing into.