Key facts
- SpaceX will exclusively purchase GPUs from Nvidia.
- Elon Musk cited Nvidia's 'Vera Rubin architecture' as superior for AI.
- SpaceX's commitment is expected to represent a notable portion of Nvidia's future revenue.
- Nvidia's GPUs are used by SpaceX for AI training, simulation, and advanced computing.
- SpaceX reported $7.8 billion in second-quarter sales, a 92% year-on-year increase.
SpaceX has committed to exclusively using graphics processing units (GPUs) from Nvidia, according to CEO Elon Musk. During the company's first quarterly earnings call as a listed entity, Musk stated that SpaceX would build its compute capacity exclusively on Nvidia's GPUs, citing the 'Vera Rubin architecture' as the best available for AI.
Musk emphasized the close cooperation and partnership between SpaceX and Nvidia, indicating that SpaceX will receive a significant percentage of Nvidia's GPUs in the coming year. This exclusive arrangement could represent a substantial portion of Nvidia's revenue and effectively excludes rival chipmakers such as Intel, AMD, and Broadcom.
Nvidia has been a critical technology partner for Musk's ventures, supplying GPU platforms for AI training, simulation, and advanced computing for both Tesla and SpaceX. Despite Tesla's development of custom AI chips, it continues to rely on Nvidia GPUs for various workloads.
SpaceX reported a 92% year-on-year increase in second-quarter sales to $7.8 billion, driven by AI infrastructure and its Starlink satellite internet network. The company aims to achieve a $100 billion annual revenue run rate by the end of the year. However, investors expressed caution regarding the company's high AI spending and a reported loss of $541 million, which led to a more than 7% decline in its shares after hours.