Elon Musk announced that SpaceX will exclusively use Nvidia graphics processing units for its future compute capacity.
Elon Musk stated that SpaceX has committed to using Nvidia graphics processing units exclusively because they are the best in the market. During a recent earnings call, Musk explained that the company chose the Vera Rubin architecture as the best AI computer architecture. This exclusive partnership with Nvidia cuts out major rivals like Intel and AMD, moving away from the other diversification strategies typically used by large tech companies to avoid supply bottlenecks. SpaceX reported its first quarterly earnings as a listed company, with second-quarter sales rising 92% year on year to $7.8 billion. While the company aims to reach a $100 billion annual revenue run rate by year-end, investors expressed caution regarding high AI spending and a $541 million loss. Despite the revenue growth, shares fell more than 7% after hours as the market weighed the impact of spending on near-term profitability.