Key Points
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Nvidia holds a dominant 90% market share in data center accelerators.
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Elon Musk announced that SpaceX will exclusively use Nvidia technology for its data centers, citing its superior capabilities.
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Morgan Stanley projects that SpaceX’s AI-related investments could exceed $100 billion by 2028.
Nvidia (NASDAQ: NVDA) is recognized as a leader in artificial intelligence infrastructure, controlling nearly 90% market share in data center accelerators. In a significant development, SpaceX (NASDAQ: SPCX) has revealed plans to build its data centers exclusively on Nvidia technology, as CEO Elon Musk praised Nvidia’s Vera Rubin architecture as the best for AI computing.
In the second quarter, SpaceX reported a staggering 247% revenue growth in its AI segment, buoyed by cloud services contracts with Alphabet and Anthropic. Musk stated that SpaceX expects to expand its compute capacity from over 2 gigawatts this year to closer to 10 gigawatts by the end of next year. Furthermore, according to Morgan Stanley, SpaceX’s capital expenditures on AI infrastructure might hit $110 billion by 2028, illustrating the company’s ambitious growth strategy.
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