Google, of all companies, much vaunted (as in your comment!) for its huge infrastructure footprint, is renting compute from SpaceX to the tune of almost a billion a month: https://techcrunch.com/2026/06/05/google-will-pay-spacex-920...
replyThis is in addition to bumping their CapEx spend to the extent their cash flow turned negative for the first time ever this quarter: https://arstechnica.com/google/2026/07/google-just-had-its-f...
The world doesn’t realize how desperately compute-crunched hyperscalers are to meet AI demand.
This is a better problem to have than SpaceX, which is renting out capacity obviously because it’s own AI products aren’t selling.
A deal with a company Google has a share of, announced a week before their IPO, with very non-committal terms and ramp period protections delivered in one large block on short term notice priced likely at the high end of what Google charges for A4X instances anyway.
replyI don’t think this reflects desperation as much as strategy.
This move was purely to pump up SpaceX stock price at its current absurd valuation b/c Google owns something like 6% of SpaceX
reply"The company raised its full-year 2026 capex forecast to between $195 billion and $205 billion, with further significant increases planned for 2027." - Alphabet.
replyI think ~$200B is just for AI infrastructure capex. Fun fact: that's nearly what the 3rd largest military in the world (Russia) is spending on a land war in Europe.
replyThis is against a $500B+ backlog of demand, which is mostly from OAI and Anthropic.
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