NVIDIA holds $21 billion in SpaceX equity
NVIDIA now holds $21 billion in SpaceX equity as the latter commits to using NVIDIA GPUs exclusively. This partnership is expected to drive the growth of AI infrastructure spending, which is projected to surge from $800 billion to between $3 trillion and $4 trillion annually by the end of the decade.
The partnership is a significant development in the buildout of the AI factory, with NVIDIA providing the necessary hardware and software. SpaceX, on the other hand, is the newest hyperscale AI buyer, with its AI segment delivering $2.56 billion in revenue.
NVIDIA’s Data Center revenue reached $75 billion last quarter, up 92% year over year, driven by the growing demand for AI computing. The company has also announced financing partnerships with several major investors to mobilize over $500 billion of third-party capital.
The exclusive partnership between NVIDIA and SpaceX is expected to play a key role in shaping the future of the AI industry, with Jensen Huang calling it the largest infrastructure expansion in human history.