Nvidia Reveals $21B Stake in SpaceX Amid GPU Preference

Nvidia has disclosed that its stake in SpaceX is worth approximately $21 billion as of the end of the second quarter. This figure is down from $30 billion at the end of June, reflecting a decline in SpaceX's stock price from $170.86 to $140.

The chipmaker owns 122.8 million Class A shares in Elon Musk's rocket maker, making it the sixth largest investor behind Musk himself and Alphabet. Nvidia's stake in SpaceX is a result of its $10 billion investment in xAI, which was acquired by SpaceX in February for $1.25 trillion.

Musk has expressed his preference for Nvidia's graphics processing units (GPUs) due to their 'best architecture' for training and inference of AI models. He also announced that SpaceX will exclusively use Nvidia's Vera Rubin GPUs next year, indicating a significant allocation of the company's resources.