Nvidia Stock Soars as SpaceX Doubles Down on GPU Orders
Nvidia's stock has received another boost from Elon Musk, who announced that SpaceX's xAI unit will double its number of Nvidia graphics processing units (GPUs) by year-end.
The update comes after Musk's previous comments on his platform, formerly Twitter, where he praised Nvidia's Vera Rubin platform as the best architecture out there and stated that SpaceX would exclusively use Nvidia chips moving forward.
xAI is currently running 110,000 Nvidia GB200 chips and 440,000 GB300s, with an additional 220,000 GB300 chips set to come online next week, followed by another 220,000 GPUs in November. Musk also expressed hope that 220,000 more GB300s could be added in late December, if they 'get lucky.'
This development surpasses SpaceX's original goal of scaling to 1 million GPUs by the end of 2026 and comes after xAI spent around $18 billion on its initial 550,000 GPUs.
Nvidia is becoming a close partner with SpaceX, not just in GPU sales but also in developing new technologies. The two companies are working together on designing chips for future orbital data centers that can withstand cosmic radiation. These data centers will require significant computing power and Nvidia's Vera Rubin platform has been optimized for use in space.