SpaceX Bets Big on Nvidia for AI Infrastructure

Elon Musk revealed during SpaceX’s second-quarter 2026 earnings call that the company will exclusively use Nvidia chips for its AI infrastructure. Musk praised Nvidia’s Vera Rubin architecture, calling it the best AI computer available. The partnership also includes co-developing the Starmind AI1 satellite compute payload, which will feature Nvidia’s next-generation Rubin GPUs and Vera CPUs, providing datacenter-class computing power in orbit.

SpaceX announced ambitious financial targets, aiming to reach over $100 billion in annualized revenue run rate (ARR) by December 2026. This projection includes revenue from the pending $60 billion acquisition of Cursor. Additionally, Musk accelerated SpaceX’s $1 trillion annual revenue goal from 2031 to 2030, with a non-zero chance of hitting it by 2029. The company reported $7.8 billion in Q2 revenue, up 92% year-over-year, but shares fell 7% after-hours due to high capital expenditures.

Despite the optimistic outlook, some investors expressed concerns about SpaceX’s lack of profitability and uncertain growth prospects. The stock has been volatile since its June listing, trading around $125, far below its post-IPO peak of nearly $225. Meanwhile, Nvidia’s stock rose 2% after-hours on the news, reflecting the strategic importance of the partnership.