SpaceX Locks in Nvidia as Exclusive AI Computing Supplier
SpaceX has announced that it will exclusively use Nvidia hardware for its artificial intelligence computing infrastructure. This commitment was made by CEO Elon Musk during the company's first earnings call as a publicly traded company on August 4.
The decision is significant, as SpaceX allocated $15.8 billion to AI computing in the second quarter alone, accounting for 86 cents of every capital dollar spent. The company expects its installed computing capacity to reach over 2 gigawatts by the end of 2026 and potentially up to 10 gigawatts by the end of 2027.
Nvidia is also a shareholder in SpaceX, holding about $21 billion in shares as of June. This means that every gigawatt built from now on will use Nvidia hardware. However, some experts argue that building exclusively with a single supplier may limit price negotiations and create supply chain risks.