SpaceX’s Major Investment in AI May Propel Nvidia to New Heights

Key Points

• Elon Musk states that SpaceX will rely exclusively on Nvidia’s Vera Rubin architecture for AI projects.

• SpaceX’s capital expenditures on AI reached $15.8 billion last quarter, making up 86% of its total expenses.

• Nvidia could see significant benefits from SpaceX’s AI investments, as SpaceX’s AI revenue tripled to $2.6 billion last quarter.

Elon Musk announced during SpaceX’s recent earnings call that the company will depend exclusively on Nvidia’s Vera Rubin architecture for its artificial intelligence initiatives. This decision comes as SpaceX’s capital expenditures on AI soared to $15.8 billion in the most recent quarter, representing 86% of its total expenditures, and more than doubling the $7.7 billion spent in the previous quarter.

SpaceX’s AI revenue climbed to $2.6 billion last quarter, a significant increase from $818 million. As the company anticipates an increase in compute capacity from 2 gigawatts to potentially 10 gigawatts next year, Nvidia stands to benefit substantially from this escalation in AI investment, despite SpaceX posting a $1.3 billion loss in its AI segment during the same period.