SpaceX nears mega AI computing deal with Google ahead of IPO

SpaceX is reportedly on the verge of a major agreement with Google that could secure substantial revenue from the tech giant's demand for artificial intelligence computing power. According to documents, Google is expected to pay the full monthly amount starting in October, after an initial period of reduced fees for utilizing SpaceX's extensive computing capabilities.

The proposed deal is slated to run until June 2029, potentially totaling around $30 billion in payments over its duration. However, the agreement includes provisions allowing either party to exit the deal under specific conditions and with advance notice, offering flexibility for both companies.

This potential partnership comes as SpaceX gears up for what could be the largest initial public offering in history. Insider sources indicate that Musk aims to list the company on the Nasdaq technology exchange on June 12, with a target share price of $135.

SpaceX plans to offer approximately 555 million shares at this price, seeking to raise around $75 billion and achieve a total valuation of $1.75 trillion. To engage its large base of retail investors, up to 30 percent of the shares may be allocated to individual investors, marking a significant move to involve the public in what could be a landmark IPO.