Nvidia Stock Surges as Musk Unveils AI Chip Expansion Plans

Nvidia's stock price rose about 1% in early Friday trading after Elon Musk revealed plans to significantly expand computing capacity at his Colossus 2 facility.

Currently, the facility has 110,000 GB200 chips and 440,000 GB300 chips. Musk announced that another 220,000 GB300 processors could be operational next week, with a further 220,000 expected in November and possibly another batch by late December.

This expansion would bring the total number of GB300 chips to as many as 660,000 before the end of the year.

SpaceX is also exploring commercial opportunities for its computing capacity. The company has partnered with Anthropic, granting access to about 325,000 Nvidia GPUs across Colossus and Colossus 2 in exchange for payments of $1.25 billion a month after an initial ramp period.