SpaceX will buy graphics processing units exclusively from Nvidia going forward, Elon Musk said on the company's first earnings call as a public firm. The move drops rival chipmakers and lands alongside SpaceX's first quarterly results, which showed revenue up 92% alongside a $541 million loss.
Elon Musk said SpaceX has decided to build exclusively on Nvidia going forward, calling the chipmaker's Vera Rubin architecture the best available for the company's compute needs. He made the comment on SpaceX's earnings call Wednesday, adding that SpaceX will receive a significant percentage of Nvidia's GPUs next year.
Following the call, Musk reiterated the commitment in a post on X: "SpaceX has committed to using Nvidia GPUs exclusively because they are the best."
Exclusivity cuts out rival chipmakers
The exclusive contract cuts out rival chipmakers including Intel, AMD, and Broadcom. It also runs counter to the diversification strategy that large tech companies often employ to reduce the risk of supply bottlenecks and other challenges tied to a single vendor.
Nvidia has supplied GPU platforms to both of Musk's public companies, Tesla and SpaceX, supporting AI model training, simulation, and advanced computing. Nvidia CEO Jensen Huang has in turn praised Musk as an exceptional engineer, calling his work on xAI's Grok and Tesla's products top-tier.
First earnings as a public company
SpaceX reported its first quarterly earnings as a listed company on Wednesday. Second-quarter sales rose 92% year on year to $7.8 billion, driven by growth in AI infrastructure and its Starlink satellite internet network.
Musk said the company aims to reach a $100 billion annual revenue run rate by year-end, though he suggested the actual figure could land higher since that target assumes no further growth initiatives. Investors instead focused on the company's heavy AI spending and a $541 million loss, sending shares down more than 7% after hours.
Source: Business Insider
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