Key Points
During a recent earnings conference call, SpaceX CEO Elon Musk announced that SpaceX will exclusively utilize Nvidia’s Vera Rubin architecture by the end of 2023. Musk praised Nvidia, calling it the “best AI computer,” which highlights ongoing collaboration between the companies. This partnership comes as SpaceX plans to launch data centers into space, potentially enhancing computing efficiency.
In the first half of 2023, SpaceX reported capital expenditures of approximately $28.5 billion, with an annualized spend nearing $60 billion. Comparatively, AI hyperscalers are projected to exceed $100 billion in data center expenditures. While having SpaceX as a client benefits Nvidia, analysts believe it won’t significantly impact Nvidia’s business overall, as they face larger competitors in the AI market.
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