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SpaceX updated its IPO prospectus on June 1 and again on June 3, adding two headline items: a new cloud contract with Google and a 5 per cent "friends and family" share allocation that can be sold immediately after listing.
According to Amendment No. 2 filed on June 3, SpaceX entered a Cloud Service Agreement with Google LLC on June 5, 2026, to supply roughly 110,000 NVIDIA GPUs plus CPUs, memory and related components. Google will pay $920 million per month from October 2026 through June 2029, worth about $29.4 billion over the term. Capacity ramps up through September at a reduced fee. The deal includes strict delivery terms. If SpaceX fails to provide the GPUs by Sept 30, 2026, Google can terminate after a one-month grace period or take fewer GPUs at a lower price. After Dec 31, 2026, either side can exit with 90 days' notice. Google keeps ownership of its AI models and data. The amendment also confirms new terms for IPO allocations. SpaceX will reserve 5 per cent of the offering for "certain employees and persons... which may include parties with whom we have business relationships and friends and families of our executive officers." Based on reported terms of 555.6 million shares at $135 to raise $75 billion, that carve-out equals $3.75 billion of stock at the IPO price. Unlike Elon Musk and top executives who face 1 year lockup, these recipients "will not be subject to a lockup restriction" and can sell anytime after the mid-June debut. At a typical 20 per cent first-day pop, the group would see $750 million in immediate gains; at 30 per cent, $1.125 billion. The updated S-1 adds another clue to the strategy. On page 51, SpaceX now says it "may issue a significant amount of equity in connection with future transactions." Wall Street read that as a signal for deal-making using potentially high-valued shares. One disclosed target: venture-backed AI coding assistant Cursor for $60 billion in an all-stock deal. SpaceX agreed to pay $10 billion in breakup and service fees if it walks away. At $60B, the acquisition would dilute shareholders 3.5 per cent and value Cursor at 20-30x current revenue. The "significant equity" line also revived speculation about SpaceX buying Tesla, though any merger would see SpaceX shareholders give up 45 per cent of the company for an EV-maker with $3.9B profit over the last four quarters. Together, the Google contract adds a major recurring revenue stream as SpaceX nears its Nasdaq debut, while the unlocked 5 per cent allocation and aggressive M&A language show how it plans to deploy stock as currency post-IPO. (ANI)
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