U.S. space development company SpaceX announced on June 5 that it has signed a large contract worth 30 billion dollars with Google for the provision of AI computing power. Under this contract, Google is expected to pay SpaceX 920 million dollars monthly for the use of AI computing power from October this year until June 2029.

According to reports, this is a computing power transaction led by xAI, an AI subsidiary under SpaceX's umbrella, and aims to develop the company as a provider of computing power infrastructure. xAI has already built a data center in Memphis, Tennessee, U.S., and is also proceeding with expansion in Mississippi.

In the industry, this is also seen as another important move by Google to continue investing in AI infrastructure. Google currently employs a capital-intensive business model and supports the expansion of AI infrastructure and global computing power through large-scale fundraising. Google emphasizes that the AI sector is currently at a critical juncture for growth, anticipating that the demand for AI solutions in the corporate and consumer markets will significantly exceed existing supply capacity.

Google also announced that it has secured 80 billion dollars through equity financing and will allocate these funds to capital expenditures for the expansion of AI infrastructure and global computing power. (Provided by/CGTN Japanese)