Google reportedly reached a multi-year deal to help deliver internet service via SpaceX’s Starlink satellites.
Alphabet’s Google (GOOG) has reportedly won a multi-year deal to deliver computing and networking resources to Elon Musk’s SpaceX and help deliver internet service through its Starlink satellites.
SpaceX will install ground stations at Google data centres that connect to SpaceX’s Starlink satellites, CNBC reported. SpaceX in the second half aims to provide fast internet service to enterprises.
The deal could last seven years, CNBC said, citing a person who declined to be named.
“This is one of a kind. I don’t believe something like this has been done before,” Bikash Koley, Google’s head of global networking, said, according to CNBC.
“The real potential of this technology became very obvious. The power of combining cloud with universal secure connectivity, it’s a very powerful combination.”
“They chose us because of the [quality, distribution and reach] of our network,” said Thomas Kurian, CEO of Google’s cloud group.
Kurian told CNBC that Starlink’s service might be valuable for consumers living in places with limited internet access, as well as businesses and government organizations running projects in remote areas.
He said he expected that having Starlink draw on Google’s cloud network will lead organizations to deploy applications inside Google’s cloud to take advantage of high speeds.
Google did not immediately respond to a request for comment.
Last month, Alphabet beat Wall Street’s first-quarter-earnings expectations by a wide margin.
SpaceX was founded in 2002 by Tesla (TSLA) Chief Executive Musk. In February, the company began taking preorders of its Starlink satellite internet service from more countries and cities.
Shares of Alphabet, Mountain View, Calif., at last check were up 1 per cent at around $ 2,223 (U.S.).