SpaceX (SPCX) has committed exclusively to Nvidia (NVDA) for its artificial intelligence infrastructure, according to CEO Elon Musk.
Shares of Nvidia jumped 2% in overnight trading on the news.
During the company's inaugural earnings call, Musk informed investors that, moving forward, all of SpaceX's AI services will be built solely on Nvidia's technology platforms.
"We believe the Vera Rubin architecture represents the optimal solution. It is, in our view, the finest AI computer available, and we deeply appreciate our extensive collaboration and partnership with Nvidia on numerous levels," Musk stated. "As a result, we are exclusive to Nvidia."
The CEO indicated that SpaceX anticipates ending the current year with over 2 gigawatts of computing power and expects to approach nearly 10 gigawatts of capacity by the close of next year.
Musk also revealed plans to deploy Nvidia’s Vera Rubin NVL72 rackscale system both on Earth and in orbit as part of the company's Starmind satellite initiative. He stated that the launch of Starmind satellites is scheduled to begin next year.
Orbiting data centers are viewed as a potential alternative to massive terrestrial facilities. Unlike ground-based installations, space-based systems eliminate the need for companies to acquire large tracts of land. Thermal management, or cooling, also presents fewer challenges in the vacuum of space compared to Earth.
However, launching servers into orbit, establishing them, and achieving connectivity may prove more complex than constructing facilities on the planet's surface.
Musk's comments came during SpaceX's first earnings report following its public listing in June. The company exceeded analyst expectations on both revenue and profit. AI-related revenue surged 213% quarter-over-quarter and 247% compared to the same period last year, reaching $2.6 billion.
SpaceX attributed this growth to cloud service agreements and an increase in Grok and X subscriptions.
The company has also entered into multi-billion dollar leasing agreements with Google and Anthropic, under which these firms will lease SpaceX's data center capacity to power their own artificial intelligence services.