Google to Lease SpaceX Data Center for 1.4 Trillion Won a Month

[Financial News]  
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It was confirmed on the 5th local time that Google, a subsidiary of Alphabet Inc., had signed a contract to lease an xAI data center under SpaceX for 33 months, or two years and nine months.
CNBC reported, citing regulatory filings, that Google agreed to lease SpaceX's artificial intelligence (AI) data center for $920 million a month, or about 1.433 trillion won.
Google will lease SpaceX's data center, which is equipped with 110,000 NVIDIA Graphics Processing Units (GPU), CPUs, memory and other components, from October this year through June 2029. The contract begins in October, while September is a ramp-up period in which the data center's computing capacity will be gradually increased, so the lease fee will be discounted.
In its filing, SpaceX said that if it fails to supply the contracted GPU capacity by Sept. 30, Google may immediately terminate the contract or lower the monthly rent.
In addition, starting next year, either side may terminate the contract with 90 days' notice.
Last month, AI startup Anthropic agreed to lease computing capacity at the Colossus 1 data center in Memphis, Tennessee.
Alphabet has also reaped significant valuation gains as a SpaceX investor. It invested in 2015, when SpaceX was valued at $12 billion. SpaceX, which is set to go public on the NASDAQ Stock Exchange on the 12th, is targeting a valuation of $1.75 trillion.
It was also confirmed that Goldman Sachs and Morgan Stanley, the lead underwriters for the SpaceX IPO, expect AI to become more central to SpaceX than rockets.
However, xAI, Elon Musk's AI division that was merged into SpaceX in February, is still posting massive losses.
Revenue in the first quarter came to just $818 million, while losses reached $2.5 billion.
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dympna@fnnews.com Song Kyung-jae Reporter