SpaceX Ditches Rivals in Favor of Exclusive Deal with Nvidia

SpaceX has announced that it will be exclusively using Nvidia's graphics processing units (GPUs) for its compute capacity. The decision was made by CEO Elon Musk, who stated that Nvidia's Vera Rubin architecture is the best available and that he values the partnership with Nvidia.

Musk emphasized that SpaceX will be receiving a significant percentage of Nvidia's GPUs next year, indicating that it could make up a notable share of Nvidia's revenue. This move cuts out rival chipmakers like Intel, AMD, and Broadcom.

The exclusive contract with Nvidia has raised eyebrows in the tech industry, as it runs counter to the diversification strategy often employed by large companies to reduce supply chain risks.