SpaceX Locks In on Nvidia for AI Computing Needs

SpaceX has committed to building exclusively on Nvidia hardware for its AI computing needs. The company spent $15.8 billion on AI computing during the second quarter, which accounts for 86% of its capital expenditures.

Nvidia shares closed up 3.4% after Elon Musk announced the exclusive partnership during SpaceX's earnings call. Advanced Micro Devices, a rival supplier of graphics processing units (GPUs), closed down 7% after reporting its quarterly results.

SpaceX has $21 billion in Nvidia shares at the end of June and expects to end 2026 with more than 2 gigawatts of computing capacity. By the end of 2027, Musk predicts the total will be closer to 10 gigawatts.