Nvidia Gains Exclusive AI Chip Deal with SpaceX

SpaceX's first financial report as a public company has provided better-than-expected results for investors. The company, led by Elon Musk, reported revenue of $7.8 billion in the second quarter, up 92% year-over-year.

The net loss was significantly reduced to $541 million from $1 billion in the same period last year. Each operating segment showed marked improvement, with the AI segment experiencing a surge in revenue by 247% to $2.56 billion.

SpaceX has inked agreements worth $14.1 billion for compute capacity, adding $1.6 billion in incremental AI revenue in the second quarter. Musk announced that Nvidia would be the exclusive AI chip provider for SpaceX's space-based data centers, deploying its Vera Rubin architecture and partnering with the company to design satellite compute payloads.

Nvidia investors may see a boost from this partnership, as the company is set to supply AI chips for SpaceX's data centers in orbit. The stock has been trading relatively flat this year, but Nvidia's forward earnings multiple is historically cheap at under 24 times.