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SpaceX is putting all its chips — literally — on one company.
During SpaceX’s first quarterly earnings call as a publicly listed company, Musk confirmed that the aerospace company is abandoning multi-vendor hardware strategies to standardize entirely on Nvidia’s upcoming architecture.
"Going forward, we've decided to build exclusively on Nvidia because we think the Vera Rubin architecture is the best architecture," Musk stated during the call. He added: "We think it's the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia. So we're exclusive to Nvidia."
Musk later doubled down on X, writing: "SpaceX has committed to using Nvidia GPUs exclusively because they are the best."
The pivot comes as SpaceX rapidly expands its data center footprint. The company aims to scale its total compute capacity from over 2 gigawatts by the end of this year to roughly 10 gigawatts by late 2027. That infrastructure underpins its internal Grok chatbot, AI coding capabilities, and lucrative cloud-leasing arrangements with partners like Google and Anthropic.
The ambition also extends into orbit. Musk revealed plans to launch "Starmind" AI satellites powered by Nvidia’s cable-less Vera Rubin NVL72 rack system, which links 72 GPUs and 36 CPUs inside a single structure.
Silicon monopolies and orbital obstacles
By shutting out rivals such as AMD, Intel, and Broadcom, SpaceX flies directly in the face of conventional enterprise IT wisdom, which usually mandates spreading supply chain dependencies across multiple suppliers to prevent bottlenecks.
Wall Street reacted with mixed emotions. While Nvidia’s stock surged over 3.4% following news that SpaceX will capture a significant chunk of its upcoming chip output, SpaceX shares tumbled more than 7% after-hours as investors digested a quarterly loss of $541 million tied to heavy AI spending.
From an enterprise perspective, this single-source commitment carries substantial strategic friction. Relying solely on Nvidia leaves SpaceX vulnerable to potential semiconductor production delays and mounting antitrust oversight as regulators monitor concentrated AI market power.
Furthermore, while orbiting data centers eliminate terrestrial real estate constraints, deploying heavy, high-density server racks into microgravity poses untested thermal engineering and operational durability challenges in vacuum environments.
Yet for Nvidia, the financial windfall is staggering. Wolfe Research analyst Chris Caso noted that SpaceX's projected 10-gigawatt roadmap could drive massive revenue growth. "Amid market concerns regarding the durability of AI spending, these comments provide some evidence that spending growth is likely to continue," Caso wrote in a client note, per MarketWatch.
For technology leaders and market observers, Musk’s move signals that the immediate demand for maximum compute density is overriding traditional risk management. SpaceX is betting its operational backbone that Nvidia’s architectural lead will outweigh the inherent risks of putting all its hardware eggs in one basket.
Related News: SpaceX’s first public earnings report is expected to put its rising AI infrastructure spending under scrutiny as investors weigh xAI’s multibillion-dollar losses against Starlink’s profits.