It is part of a cloud services agreement that runs from October this year to June 2029, according to SpaceX. In addition, the agreement includes capacity expansion between June and September 2029 at a reduced price.
According to a clause, Alphabet has the right to terminate the agreement if SpaceX fails to deliver access to semiconductor giant Nvidia's chips within a specified time frame.
Both parties also have the right to terminate the agreement on other grounds with 90 days' notice.
Alphabet's stock fell 1 percent on the New York Stock Exchange on Friday.
