INFRA Signal 477
Nvidia's SpaceX stake valued at $21B after second quarter
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Nvidia disclosed a $21 billion holding in SpaceX that originated from its $10 billion investment in xAI, while SpaceX pledged to use Nvidia AI chips exclusively for its data centers and frontier models.
Engineers building AI infrastructure may see increased demand for Nvidia GPUs as SpaceX locks in exclusive use of its chips for data centers and AI models. The large stake signals Nvidia's growing financial influence over SpaceX, potentially affecting chip allocation and supply chains for AI workloads. However, the stake's current value of about $17.2 billion reflects share price volatility, showing that the financial exposure can fluctuate quickly.
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Nvidia disclosed a $21 billion stake in SpaceX at the end of the second quarter, representing 122.8 million Class A shares.
SpaceX said it will exclusively use Nvidia's AI chips in its data centers and for its AI frontier models.
The stake's value fell to about $17.2 billion after SpaceX's stock declined from $170.86 to $140 per share.
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Nvidia disclosed on Friday that its stake in SpaceX was worth about $21 billion at the end of the second quarter.
The stake consists of 122.8 million Class A shares obtained through Nvidia's $10 billion investment in Musk's xAI.
xAI was acquired by SpaceX in February in a deal valued at $1.25 trillion, according to a person familiar with the matter.
This makes Nvidia the sixth biggest investor in SpaceX based on data from FactSet.
On SpaceX's second-quarter earnings call, Elon Musk said the company will exclusively use Nvidia's AI chips in its data centers and to power its AI frontier models.
He described Nvidia's graphics processing units as having the 'best architecture' for training and inference of AI models.
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