Elon Musk said on SpaceX's first public earnings call that the rocket company will use Nvidia's chips exclusively for its AI infrastructure, sending Nvidia shares higher and pressuring rival chipmakers. Bernstein analysts warn the deal could push neoclouds CoreWeave and Nebius further back in the queue for Nvidia's next-generation hardware.
Elon Musk told investors on SpaceX's first public earnings call that his rocket company will use Nvidia's Vera Rubin NVL72 rack-scale system exclusively for its AI infrastructure, deploying the hardware both on the ground and in space. The commitment points to SpaceX securing a substantial share of Nvidia's GPU output over the coming year.
Musk calls Nvidia's chips the best available
During the call, according to The Motley Fool, Musk called Nvidia's hardware the "best AI computer". SpaceX will run the Vera Rubin architecture exclusively by the end of the year, and the company has also floated a longer-term plan to launch data centers into space. Nvidia has long counted SpaceX as a partner, and the endorsement should calm investors' fears of rising competition.
Nvidia shares climb after the announcement
The announcement pushed Nvidia shares up over 4%, while rival chipmakers AMD and Intel saw pressure on their stocks.
Yet the scale tells a different story. SpaceX spent about $28.5 billion on capital expenditures in the first six months of the year, or nearly $60 billion annualized. AI hyperscalers, by contrast, are spending anywhere from $100 billion to more than $200 billion on data center capital expenditures this year, and not all of that reaches Nvidia directly.
Neoclouds may lose their place in the queue
Bernstein analysts said the exclusive deal could push SpaceX to the front of the line for chip allocations, a problem for neoclouds CoreWeave and Nebius, whose business models depend on early access to Nvidia silicon.
Both CoreWeave and Nebius have each received $2 billion equity investments from Nvidia and are targeting more than 5 GW of AI compute capacity by 2030. Bernstein also raised its price target on SpaceX from $239 to $248 following the company's Q2 2026 earnings, citing its AI revenue outlook.
Sources: The Motley Fool, Crypto Briefing, Crypto Briefing
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