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nvda shares moved higher Wednesday after Elon Musk said SpaceX will build its artificial intelligence services exclusively on Nvidia systems, delivering a fresh boost to the semiconductor company’s growth story. Nvidia stock rose roughly 2% in premarket trading, while SpaceX shares dropped more than 10% following the company’s first-ever earnings call.
Musk’s comments gave investors a closer look at SpaceX’s expanding AI ambitions and its growing reliance on Nvidia’s advanced computing infrastructure. The announcement also highlighted the increasingly important relationship between major technology companies and Nvidia, whose graphics processing units power many of the world’s most demanding AI workloads.
NVDA Gains Momentum From SpaceX’s Nvidia Commitment
During the earnings call, Musk praised Nvidia’s Vera Rubin architecture, describing it as the best architecture and the best AI computer available. He also emphasized the close cooperation between SpaceX and Nvidia before declaring that SpaceX would be “exclusive to Nvidia.”
The commitment could represent a significant long-term opportunity for Nvidia. SpaceX is building computing capacity to support cloud services, Grok and X subscriptions, and future AI products. By choosing Nvidia systems across its operations, the company could become an important customer for Nvidia’s next-generation data-center hardware.
For investors, the news reinforces the strength of Nvidia’s competitive position. Large technology companies continue to seek powerful, reliable processors as they expand generative AI tools, cloud platforms, and machine-learning services. Nvidia’s software ecosystem and hardware roadmap have helped it remain a leading supplier in that market.
Powerful Compute Expansion Planned Through 2027
SpaceX expects to finish this year with more than 2 gigawatts of computing capacity, according to Musk. The company anticipates reaching close to 10 gigawatts by the end of next year, a dramatic expansion that would require substantial investment in servers, networking equipment, power systems, and cooling infrastructure.
That planned growth offers a major potential demand catalyst for Nvidia. Data-center operators are already competing for access to advanced AI chips, and SpaceX’s ambitious computing targets could intensify that competition. However, the size and timing of the buildout remain subject to financing, infrastructure availability, and execution.
- SpaceX plans to use Nvidia systems exclusively for its AI services.
- The company expects more than 2 gigawatts of compute by the end of 2026.
- SpaceX is targeting close to 10 gigawatts by the end of 2027.
- Nvidia’s Vera Rubin architecture is central to the company’s strategy.
SpaceX’s Bold Starmind Satellite Data-Center Plan
Musk also said SpaceX plans to launch Nvidia’s Vera Rubin NVL72 rack-scale system both on the ground and in space. The hardware is expected to support the company’s Starmind satellite program, with initial satellite launches planned for next year.
Orbital data centers have attracted interest as companies search for alternatives to enormous facilities on Earth. Space-based computing could reduce the need to acquire large areas of land and may offer potentially less energy-intensive cooling. Solar power and the natural environment of space are also being considered as possible advantages.
Still, the concept faces formidable technical hurdles. Launching heavy computing equipment into orbit is expensive and complex. SpaceX would also need to ensure that servers can operate reliably, communicate with ground systems, and receive maintenance or replacement hardware when necessary.
Those challenges mean the Starmind program is an exciting but unproven development. For Nvidia, however, even early-stage orbital deployments could create a new market for high-performance computing systems.
Explosive AI Revenue Growth Adds to the Story
SpaceX reported that its AI revenue climbed 213% quarter over quarter and 247% from the same period a year earlier, reaching $2.6 billion. The company attributed the growth to cloud service agreements and increased subscriptions tied to Grok and X.
SpaceX has also entered multibillion-dollar leasing agreements with Google and Anthropic. Under those arrangements, the companies will rent SpaceX data-center capacity to support their AI services. The agreements suggest that demand for computing power remains strong and could help SpaceX fund its broader infrastructure expansion.
The developments provide another reason for investors to monitor nvda closely. Nvidia benefits when customers expand AI capacity, but the stock’s valuation remains sensitive to expectations around future demand, competition, supply chains, and capital spending. A major customer commitment can strengthen the outlook, yet it does not eliminate market risk.
What the SpaceX Deal Means for Nvidia Investors
The SpaceX announcement is significant because it links Nvidia to one of the most ambitious AI infrastructure projects in the technology sector. It also expands the conversation beyond traditional cloud data centers and into satellite-based computing.
In the near term, traders may focus on the immediate stock reaction and Nvidia’s ability to convert customer enthusiasm into sustained revenue growth. Over the longer term, the company’s performance could depend on whether projects such as Starmind move from bold plans to dependable commercial operations.
For now, Musk’s endorsement gives Nvidia a powerful headline and strengthens the case that demand for AI chips remains broadening across industries. SpaceX’s next milestones, including infrastructure expansion and planned satellite launches, will likely determine how durable that enthusiasm becomes.
Frequently Asked Questions
Why did nvda shares rise?
Nvidia shares rose after Elon Musk said SpaceX would use Nvidia systems exclusively for its AI services, signaling potentially significant future demand for Nvidia hardware.
What is SpaceX’s Starmind program?
Starmind is SpaceX’s planned satellite initiative that may include Nvidia computing systems in orbit. The company expects to begin launching Starmind satellites next year.
How much AI revenue did SpaceX report?
SpaceX reported $2.6 billion in AI revenue, representing a 213% increase from the previous quarter and a 247% increase from the same period a year earlier.
What is the Vera Rubin architecture?
Vera Rubin is Nvidia’s next-generation AI computing architecture. Musk described it as the best AI computer and said SpaceX values its partnership with Nvidia.
