Nvidia Soars on Exclusive Deal with Elon Musk's SpaceX
Nvidia shares surged on Wednesday, rising as much as 4.9% after Elon Musk announced that SpaceX would exclusively use Nvidia's graphics processing units (GPUs) in its AI systems.
Musk made this commitment during a conference call to discuss the company's first financial report as a public entity. He specifically mentioned Nvidia's Vera Rubin architecture, calling it 'the best AI computer' and stating that Nvidia is 'the best.'
Nvidia will supply SpaceX with a significant portion of its GPUs next year, according to Musk.
SpaceX expects to have over 2 gigawatts of compute capacity by the end of 2026, which is set to rise to 10 gigawatts by 2027. This partnership underscores Nvidia's dominance in AI chipmaking and is expected to benefit the company's shareholders.