This month marks the first payment of a major compute-rental contract for Space Exploration Technologies (SPCX -2.80%). Alphabet's Google agreed to pay the space company $920 million a month for access to about 110,000 Nvidia GPUs in a deal that runs from October 2026 through June 2029.
SpaceX has about 13.2 billion shares outstanding, so some quick math shows how much this compute deal is worth per share.
Image source: Getty Images.
At the contract's monthly rate, Google will pay SpaceX about $11 billion a year and about $30 billion over the full 33-month term. That comes out to approximately $0.07 in sales per share per month, $0.83 in sales per share per year, and $2.27 in sales per share over the entire term.
SpaceX has a market cap of $2.2 trillion as of Oct. 12, so $11 billion in annual sales is a small amount by comparison. It's more significant when compared with SpaceX's revenue. The space company reported revenue of $20.7 billion over the trailing 12 months. This contract alone could increase yearly revenue by over 50%, and SpaceX has secured an even more lucrative deal with Anthropic for up to $84.5 billion through May 2029.
NASDAQ: SPCX
Key Data Points
The catch is that SpaceX's deals with Google and Anthropic include 90-day mutual cancellation clauses, giving each side the option to walk away with 90 days' notice after an initial period. Investors shouldn't look at SpaceX's compute-rental contracts as guaranteed long-term income. Still, these agreements are promising signs that the company's AI segment will become a profitable part of its business and help justify the premium valuation on SpaceX stock.
