Musk: SpaceX commits to exclusive use of Nvidia GPUs, will take significant percentage of shipments next year

Published Aug 5, 07:38 AM UTC

During SpaceX's earnings call on Wednesday, CEO Elon Musk announced that the company has committed to buying graphics processing units exclusively from Nvidia, citing the superiority of Nvidia's Vera Rubin architecture. Musk stated that SpaceX will receive a significant percentage of Nvidia's GPUs next year, potentially making up a notable share of Nvidia's revenue. This exclusive deal cuts out rival chipmakers like Intel, AMD, and Broadcom, and runs counter to the diversification strategy often used by large tech companies. Nvidia CEO Jensen Huang has praised Musk as an 'extraordinary engineer' and called his work 'world-class.' SpaceX also reported its first quarterly earnings as a listed company, with Q2 sales rising 92% year-on-year to $7.8 billion, driven by growth in AI infrastructure and Starlink. Despite the revenue beat, a $541 million loss and high AI spending sent shares down over 7% after hours.