- SPCX
- NVDA
SpaceX (SPCX) is all-in on Nvidia (NVDA).
CEO Elon Musk told investors during the company’s first-ever earnings call that going forward, SpaceX will build its AI services exclusively on Nvidia’s systems.
“We think the Vera Rubin architecture is the best architecture. We think it’s the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia,” Musk said. “So we’re exclusive to Nvidia.”
According to the CEO, SpaceX expects to end the year with more than 2 gigawatts of compute and anticipates having close to 10 gigawatts of computing capacity by the end of next year.
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Musk also said that the company plans to launch Nvidia’s Vera Rubin NVL72 rackscale system both on the ground and in space as part of its Starmind satellite program.
According to Musk, SpaceX will begin launching Starmind satellites next year.
Orbiting data centers are seen as a potential solution to building massive data centers on Earth. Unlike their Earth-based counterparts, space-based solutions don’t require companies to purchase large swaths of land. Cooling is also less of an issue in space than on the ground.
But launching the servers into orbit and getting them set up and connected could prove more difficult than constructing facilities on Earth.
Musk made his remarks during SpaceX’s first earnings report since going public in June. The company topped expectations on both the top and bottom lines, with Al revenues climbing 213% quarter over quarter and 247% since the same period last year to $2.6 billion.
SpaceX attributed the growth to cloud service agreements and increased Grok and X subscriptions.
SpaceX entered into multibillion-dollar leasing agreements with Google and Anthropic that will see the companies rent out SpaceX’s data center capacity to power their AI services.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X at@DanielHowley.
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