SpaceX says it’s ready to be a one-chip supplier company.
On SpaceX’s highly anticipated earnings call on Wednesday, CEO Elon Musk said his company was committed to buying graphics processing units from only one place.
“Going forward, we’ve decided to build exclusively on Nvidia because we think the Vera Rubin architecture is the best architecture,” Musk said on the call, talking about his company’s compute capacity. “We think it’s the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia. So we’re exclusive to Nvidia.”
He added that SpaceX will receive a significant percentage of Nvidia’s GPUs next year, indicating that the space company could make up a notable share of Nvidia’s revenue.
Nvidia has been a key technology partner for both of Musk’s public companies, Tesla and SpaceX, supplying GPU platforms that support AI model training, simulation, and advanced computing. Although Tesla has invested heavily in custom AI chips, it continues to use Nvidia GPUs for various AI and data center workloads.
Following the call, Musk reiterated his commitment to Nvidia, announcing it again on X.
In a post on Wednesday night, he wrote: “SpaceX has committed to using Nvidia GPUs exclusively because they are the best.”
An exclusive contract with Nvidia cuts out rival chipmakers like Intel, AMD, and Broadcom. The exclusive announcement also runs counter to the diversification strategy that large tech companies often employ to reduce the risk of supply bottlenecks and other challenges stemming from dependence on a single company.
‘World class’ products
Musk and his companies have received similar compliments from Nvidia in return.
Nvidia CEO Jensen Huang has repeatedly praised Musk as an “extraordinary engineer,” and said that Nvidia does significant business with Tesla and SpaceX’s xAI. He has also called Musk’s work on xAI’s Grok and Tesla products “world-class.”
On Wednesday, the space company reported its first quarterly earnings as a listed company, topping revenue expectations. It reported that second-quarter sales rose 92% year on year to $7.8 billion, driven by growth in AI infrastructure and Starlink, its satellite internet network.
On the call, Musk said the company aims to reach a $100 billion annual revenue run rate by year-end, but Wall Street remained cautious over the pace of spending and its impact on near-term profitability.
“I think it may be higher than that,” Musk said, adding that the $100 billion ARR is “if we did nothing.”
Despite revenue, investors focused on the company’s high AI spending and a $541 million loss, sending shares down more than 7% after hours.
