ALPHABET A / META PLATFORMS INC : Eye Popping Agreement for Short Term Capacity

研报英文原文证据摘录

ALPHABET A / META PLATFORMS INC : Eye Popping Agreement for Short Term Capacity

EQUITIES

INTERNET & MEDIA

ALPHABET A OUTPERFORMPRICE* USD368.5  TARGET PRICE USD420 (UPSIDE 14%)

META PLATFORMS INC OUTPERFORMPRICE* USD593.0  TARGET PRICE USD955 (UPSIDE 61%)

FLASH NOTE

Eye Popping Agreement for Short Term Capacity

8 JUNE 2026 Securities Research Report Production time: 15:38* (London time)

Research Analyst & Publishing Entities

Nick Jones BNP Paribas Securities Corp (1) +1 (929) 742-0211 nick.2.jones@us.bnpparibas.com

What happened?

On June 5, it was announced that GOOGL entered into a Cloud Service Agreement with SpaceX, agreeing to pay the

company $920M per month for 200MW of capacity from October 2026 through June 2029. On a per GW basis, this

translates to an eye-popping run rate of $50B+ per year for compute capacity including ~110K NVIDIA GPUs, CPUs,

memory, and other related components. If SpaceX fails to deliver access to the committed amount of GPUs by

September 30, 2026, then following a one-month grace period, GOOGL may immediately terminate the agreement or

accept the number of GPUs provided, with a corresponding pro rata reduction in the monthly fees. After December 31,

2026, the agreement may be terminated by either party upon a 90 days’ notice. A Google spokesperson described the

relationship as “a short-term, timely agreement to ensure it has bridge capacity to meet surging customer demand for

its agent platform, Gemini Enterprise, which has been even higher than it expected.”

BNPP View:

To set the stage, we remind investors that GOOGL has a 6.1% stake in SpaceX, worth ~$106B, making the agreement

in someways self-serving beyond access to capacity. The agreement supports our view that demand for AI compute