SpaceX and Nvidia establish exclusive compute relationship; Nvidia commits dedicated GPU allocation to SpaceX operations.

Elon Musk announced on SpaceX's earnings call Wednesday that the company will build exclusively on Nvidia GPUs going forward. "We've decided to build exclusively on Nvidia because we think the Vera Rubin architecture is the best architecture," Musk said. "We think it's the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia."

Musk added that SpaceX will receive a significant percentage of Nvidia's GPU supply next year, positioning the space company as a major customer for the chipmaker. He reiterated the commitment that evening on X, writing: "SpaceX has committed to using Nvidia GPUs exclusively because they are the best."

The exclusive arrangement cuts out rival chipmakers including Intel, AMD, and Broadcom—a departure from the diversification strategies typically adopted by large technology companies to mitigate supply chain risks and reduce dependence on single suppliers. Nvidia has been a key technology partner for both of Musk's major companies, supplying GPU platforms for AI model training, simulation, and advanced computing. Tesla, despite investing heavily in custom AI chips, continues to rely on Nvidia GPUs for various AI and data center workloads.

The relationship extends beyond hardware procurement. Nvidia CEO Jensen Huang has repeatedly praised Musk as an "extraordinary engineer" and highlighted Nvidia's significant business with Tesla and SpaceX's xAI division. Huang has also called Musk's work on xAI's Grok and Tesla products "world-class."

SpaceX reported its first quarterly earnings as a publicly traded company on Wednesday. Second-quarter sales rose 92 percent year-over-year to $7.8 billion, driven by growth in AI infrastructure and Starlink, its satellite internet network. Musk said the company aims to reach a $100 billion annual revenue run rate by year-end. Despite strong revenue growth, the company reported a $541 million quarterly loss, and Wall Street remained cautious about the pace of spending and its impact on near-term profitability. Shares fell more than 7 percent after hours.