Musk's Massive Nvidia Order Could Send Stock Soaring
Nvidia's (NVDA) stock got another boost after Elon Musk announced massive orders for Nvidia chips from SpaceX, which will use them to power its AI computing cluster, Colossus 2.
The current order consists of 110,000 GB200 chips and 440,000 GB300s, with an additional 220,000 GB300s set to come online next week and another 220,000 GPUs in November. Musk hopes to get another 220,000 GB300s by late December.
SpaceX's original goal was to scale to 1 million GPUs by the end of 2026, but it looks like it will surpass this target if the orders are completed. xAI spent around $18 billion on its initial 550,000 GPUs, and this order could be worth even more given that it consists of more of its newer GB300 GPUs.
Nvidia and SpaceX are working together to develop chips optimized for space, as current chips can be affected by cosmic radiation, causing significant computational errors. The two companies have designed a Vera Rubin NVL72 system specifically for use in space, which will be launched into orbit towards the end of 2027.