Nvidia stock rose 4.3 percent to $220.96 after Elon Musk said SpaceX would use Nvidia exclusively for all future artificial intelligence infrastructure. Musk made the commitment during SpaceX's inaugural earnings call.
SpaceX expects to end this year with more than two gigawatts of AI compute online and projects cumulative capacity closer to 10 gigawatts than five gigawatts by the end of next year.
Musk said SpaceX chose Nvidia because it views the Vera Rubin architecture as the best available option.
AMD stock fell 9 percent following the announcement, reflecting investor concern about market share in the expanding AI infrastructure sector.
For Nvidia, the deal adds long-term revenue visibility and validates its product roadmap. Its CUDA software platform remains the primary reason customers stay locked in—switching costs are high, and SpaceX's commitment deepens that moat.
SpaceX's push to 10 gigawatts of compute by 2027 also signals a strategic expansion into AI services, potentially including commercial offerings such as Starmind, beyond internal operations. That scale tests the limits of current data center capacity and power supply.
An exclusive vendor relationship introduces supply chain concentration risk. Musk's public commitment suggests confidence that Nvidia can meet the delivery timeline.
