Nvidia Dominance in AI Computing Grows with SpaceX Partnership

Nvidia (NVDA) is solidifying its dominance in AI computing, thanks to recent deals and partnerships. The company's commitment to a full system approach is winning over major players like SpaceX (SPCX), which is now exclusively using Nvidia for all its AI needs.

SpaceX CEO Elon Musk recently announced the switch on the company's earnings call, praising Nvidia's Vera Rubin platform as 'the best architecture' for AI computing. The new setup will power Grok, an AI chatbot from Musk's xAI, and SpaceX's pending Cursor acquisition. Musk aims to have 20 gigawatts of capacity online by the end of next year, though he admitted that this is a stretch goal.

Nvidia has also partnered with Safe Superintelligence (SSI), founded by Ilya Sutskever. The company will gain access to Nvidia's Vera Rubin platform and receive significant GPU supply next year. This move follows other recent partnerships in the AI computing space, including new storage technology built around Nvidia's Vera CPU.

Gilad Shainer, an Nvidia networking executive, described the strategy at a recent conference: 'We design our systems as a single unit, then sell the pieces separately so customers can mix and match if they choose.'