Nvidia has disclosed a stake of nearly 123 million SpaceX shares, worth about $21 billion at the end of June but now closer to $17 billion after SpaceX stock slid from its IPO price. The equity stake traces back to Nvidia's investment in xAI, made just before Elon Musk folded the AI lab into SpaceX.
Nvidia has disclosed that it owns nearly 123 million shares in SpaceX. An SEC filing valued the position at almost $21 billion at the end of June. SpaceX's shares have fallen sharply since its June initial public offering, so Nvidia's stake would now be worth $17 billion.
The stake traces back to the xAI deal
The disclosure marks a payoff on Nvidia's investment in xAI, completed in January, shortly before Musk combined the AI lab with SpaceX. The $5.5 trillion company's move underscores chief Jensen Huang's effort to use Nvidia's financial power to forge complex and often circular financial links across the AI industry, including with some of his largest customers.
SpaceX's own listing was sizeable: the rocket maker sold 555.6 million Class A shares at $135 apiece, raising roughly $75 billion. The offering valued the company at approximately $1.77 trillion, making it one of the largest public debuts on record.
Musk commits to Nvidia hardware
Musk, during SpaceX's first public earnings call last week, said the company had an exclusive relationship with Nvidia to kit out its data centres. According to the Financial Times: "We greatly value our close co-operation and partnership on many levels with Nvidia." SpaceX is also planning to increase its computing capacity from 2 gigawatts at the end of this year to closer to 10 gigawatts than 5 gigawatts by the end of 2027, Musk told investors.
A widening web of AI bets
Nvidia has committed more than $100 billion to AI companies over the past two years, including stakes in CoreWeave, Thinking Machines and Safe Superintelligence. It also holds a stake in Cursor, the code-editing start-up SpaceX acquired for $60 billion this week. This week Nvidia also outlined plans for a financing consortium exceeding $500 billion with Apollo Global, Blackstone, BlackRock, Brookfield, Goldman Sachs and KKR to help fund its customers.
The filing also showed a stake in Intel valued at approximately $30 billion, putting Nvidia's combined SpaceX and Intel holdings above $50 billion. Google, meanwhile, owns roughly 7% of SpaceX after investing $900 million in 2015, a stake it told investors in July was worth about $94 billion.
Sources: Financial Times, Crypto Briefing
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