Chipmaker Reveals $21 Billion Investment in Elon Musk’s Rocket Company
Nvidia has revealed it owns nearly 123 million shares in SpaceX, valued at approximately $17 billion following a decline in share price after SpaceX’s June initial public offering. The chipmaker’s investment in SpaceX underscores its broader strategy to strengthen financial ties within the AI industry, particularly through its involvement with Elon Musk’s ventures.
Nvidia’s Investments in AI and SpaceX
The disclosure also highlights Nvidia’s investment in xAI, completed in January, shortly before Musk integrated the AI lab with SpaceX. Nvidia’s CEO, Jensen Huang, is leveraging the company’s substantial financial resources to forge connections across the AI sector, including partnerships with major customers. During SpaceX’s recent earnings call, Musk emphasized the exclusive relationship between the two companies, stating that SpaceX has chosen to build its data centers solely on Nvidia technology, citing the superiority of its Vera Rubin architecture.
In the past two years, Nvidia has committed over $100 billion to various AI companies, including cloud computing startups like CoreWeave and AI labs such as Thinking Machines and Safe Superintelligence. Additionally, Nvidia has invested in Cursor, a code-editing startup recently acquired by SpaceX for $60 billion.
Financial Commitments and Future Plans
This week, Nvidia announced plans to assemble over $500 billion from a consortium of investors, including Apollo Global, Blackstone, BlackRock, Brookfield Asset Management, Goldman Sachs, and KKR, to support its customers. The company intends to partially guarantee loans from these Wall Street investors, with the loans secured by the value of its chips. These financial commitments are designed to accelerate the development of AI infrastructure and further integrate the industry with Nvidia’s technology.
Musk indicated that SpaceX aims to boost its computing capacity from 2 gigawatts at the end of this year to closer to 10 gigawatts by the end of 2027. The recent IPO of SpaceX has also yielded substantial returns for its early investors, with Google holding approximately 7% of the company, valued at around $94 billion after an initial investment of $900 million in 2015.
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