SpaceX has shifted from a Google-backed startup to a critical infrastructure provider for the search giant, inking a $920 million monthly deal to supply AI compute capacity as part of a broader, complex rivalry between Elon Musk and Google co-founder Larry Page. This partnership, which follows Google’s initial $900 million investment in SpaceX in 2015, highlights a growing interdependence between the two tech titans despite years of ideological friction over the future of artificial intelligence and autonomous systems, according to recent regulatory filings and corporate disclosures.
How did the Musk-Page relationship sour?
The rift between Elon Musk and Larry Page reportedly began at Musk’s 44th birthday party in June 2015. According to reports, Page labeled Musk a “speciesist” during a debate regarding the potential for digital life forms to surpass human intelligence. At the time, Musk argued for the prioritization of human survival, a stance that clashed with Page’s outlook on AI development. This disagreement occurred the same year Google made a $900 million investment in SpaceX, securing a roughly 4.9% stake in the rocket manufacturer—a holding now valued at over $100 billion, according to market data from the close of trading on Friday.

Google’s 4.9% stake in SpaceX is widely considered one of the most lucrative private market investments in the history of the search giant, far outpacing the growth of many of its other venture capital bets.
Why is SpaceX providing AI infrastructure to Google?
SpaceX is leasing AI infrastructure to Google for approximately $920 million per month over a 32-month period to meet surging demand for Google’s Gemini Enterprise platform. Google Cloud representatives stated the deal provides “bridge capacity” to address customer interest that has exceeded internal forecasts. For SpaceX, this revenue stream helps monetize the massive capital expenditures required to build out its Colossus data centers in Memphis, Tennessee. Filings indicate that Google holds termination rights if SpaceX fails to deliver the required AI chip capacity by September 30.
How do Tesla and Waymo compete in the autonomous sector?
While their cloud businesses cooperate, Tesla and Google’s Waymo remain in direct competition regarding autonomous vehicle technology. Waymo, established in 2009, currently operates a fleet of thousands of robotaxis across 11 U.S. cities, completing over 500,000 paid trips weekly. In contrast, Tesla’s autonomous efforts—often criticized by Musk for their reliance on different sensor technology—have faced slower deployment. Tesla currently operates approximately 50 Robotaxi-branded vehicles, primarily in Austin, Texas. Musk has frequently used social media to challenge Waymo’s reliance on lidar sensors, favoring Tesla’s camera-based approach instead.

What is the status of the SpaceX-Google cloud partnership?
The operational bond between the two companies deepened in 2021 when SpaceX selected Google Cloud to support its Starlink satellite internet service. At the time, SpaceX had roughly 1,500 satellites in orbit and 500,000 subscribers. By utilizing Google’s private fiber-optic network, SpaceX aimed to lower latency and increase connectivity speeds for its global user base. This seven-year agreement marked a significant victory for Google Cloud as it sought to capture market share from dominant rivals like Amazon Web Services and Microsoft Azure.
Frequently Asked Questions
- Does Google still own part of SpaceX? Yes, Google holds a roughly 4.9% stake in SpaceX, which was acquired through a $900 million investment in 2015.
- What is the value of the new SpaceX-Google AI deal? The deal is valued at $920 million per month for 32 months, totaling nearly $30 billion in potential revenue for SpaceX.
- Are Musk and Page still on speaking terms? While reports suggest a long-standing personal rift, the companies maintain functional, high-value business partnerships, including cloud and AI infrastructure agreements.
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