Alphabet signs multi-year AI infrastructure agreement with SpaceX to access more than 100,000 Nvidia GPUs, backed by US$85b equity raise anchored by Berkshire Hathaway.

Alphabet has signed a multi-year AI infrastructure agreement with SpaceX to access more than 100,000 Nvidia GPUs housed in SpaceX data centers. The deal is tied to Alphabet's US$85b equity raise, anchored by Berkshire Hathaway, to fund expanded AI compute capacity.

The arrangement highlights growing competition for high-end chips between large AI players and points to SpaceX's data centers playing a larger role in AI supply chains.

For investors, the SpaceX deal and US$85b equity raise place emphasis on how efficiently Alphabet turns much larger AI capacity into revenue and earnings, while managing execution risk around such a large build out. Simply Wall St estimates Alphabet shares are trading 11.5% above fair value.