Nvidia Powers SpaceX AI Satellites
Nvidia's AI ambitions are taking to the skies as SpaceX prepares to launch satellites powered by the chipmaker's technology. The partnership between Nvidia and SpaceX marks a significant expansion of Nvidia's presence in the space industry, with potential new sources of demand for its accelerators.
SpaceX plans to begin launching the first AI satellites in the fourth quarter of 2027, with Elon Musk suggesting that orbital computing could offer an alternative way to handle energy-intensive AI workloads. The network is targeted for broader deployment in 2028.
Nvidia's ownership of 122.8 million SpaceX shares makes it both a supplier and shareholder of the company. The chipmaker is also shipping its next-generation Vera Rubin systems to SpaceX, as well as other major cloud customers.
While the opportunity remains speculative, analysts do not expect SpaceX's orbital computing operations to generate meaningful revenue until at least fiscal 2029. Technical issues such as heat removal, radiation exposure, satellite congestion, and regulation could slow deployment.