Elon Musk Committed SpaceX to Building "Exclusively on Nvidia." Here's What That Locks In for SpaceX's Compute Bill.
Yahoo Finance ·
SpaceX ( SPCX -1.20% ) held its first earnings call as a publicly traded company on Aug. 4, and CEO Elon Musk used it to place the company's largest capital outlay, artificial intelligence (AI) computing, in the hands of a single supplier. Musk said, "going forward, we've decided to build exclusively on Nvidia because we think the Vera Rubin architecture is the best architecture. 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." Nvidia ( NVDA +0.84% ) shares closed up 3.4% the next day. Advanced Micro Devices , the closest alternative supplier of graphics processing units (GPUs) for AI, closed down 7% after reporting its own quarterly results that same afternoon. Nvidia is also a shareholder, with about $21 billion in SpaceX shares at the end of June.
DYAX Investor Sentiment
Bullish (Long) 32% · Bearish (Short) 68%
414 participants
Related News
- AWS Plans 2 Million More NVIDIA GPUs. Is This Better News for AMZN’s Cloud Growth or NVDA’s Backlog?
- Entergy Says Google’s Arkansas Solar Payments Could Total $2.1 Billion. Is Power Becoming Alphabet’s New Bottleneck?
- Marvell Raised Its Outlook but Fell as Google Chip Revenue Stayed Distant. Has the AI Payoff Been Priced In? (Ready for review)
- Coatue Opened Positions in Intel and Cerebras. Is the AI Chip Trade Broadening Beyond NVIDIA?
- Jim Cramer Flagged Another Risk For Adobe Inc. (NASDAQ:ADBE)
- Jim Cramer Says “Someone Must Know Something” About Broadcom Inc. (NASDAQ:AVGO)’s Post-Earnings Share Dip
