CEO Elon Musk has announced that SpaceX will rely exclusively on Nvidia systems to power its artificial intelligence infrastructure. The decision was made public during SpaceX’s inaugural earnings call, where Musk highlighted the company’s intent to build all future AI services using Nvidia’s Vera Rubin architecture, citing it as the most advanced AI computing solution available.
SpaceX plans to scale its computing capacity from over 2 gigawatts this year to nearly 10 gigawatts by the end of next year.
According to the CEO, the partnership with Nvidia will see the Vera Rubin NVL72 rack-scale system incorporated not only into ground-based data centers but also launched into orbit as part of the company’s Starmind satellite initiative. The first launches of these AI-capable satellites are scheduled to begin next year.
Musk pointed to the advantages of space-based servers, such as reduced land requirements and cooling needs, while also acknowledging the complexities inherent in deploying and operating such infrastructure in orbit.
The update on SpaceX’s AI strategy was delivered alongside the company’s first financial report since its public offering. SpaceX reported AI-driven revenue of $2.6 billion for the most recent quarter, marking triple-digit growth year over year.
The company attributed this rise to expanded cloud service agreements and increased subscription sales in its Grok and X businesses.
In the wake of SpaceX’s commitment to Nvidia, AMD’s stock took a sharp downturn as investors reacted to the news. Despite AMD’s recent gains and ongoing AI ambitions, the high-profile selection of Nvidia as SpaceX’s exclusive partner underscored Nvidia’s leading position in advanced AI hardware.
The share price of AMD rose by 7% during Tuesday’s trading to $518.58 before taking a slump of around 9% to $472.94 in after-hours. On the other hand, Nvidia extended gains, advancing by 2.16% to $216.52 per share.
