- NVIDIA disclosed a $21 billion stake in SpaceX, owning 122.8 million Class A shares as the two companies deepen their data-center partnership.
- The stake comes from Nvidia‘s $10 billion investment in xAI before SpaceX acquired the AI company in February.
- SpaceX has committed exclusively to Nvidia‘s Vera Rubin architecture for its data centers and expects a significant chip allocation next year.
Nvidia has disclosed a $21 billion stake in Elon Musk’s SpaceX, with the chipmaker owning 122.8 million Class A shares in the rocket maker, according to a filing with the Securities and Exchange Commission. The investment is Nvidia‘s second-largest holding, trailing its position in Intel, which was worth roughly $22 billion at the end of the latest quarter.
Nvidia‘s shares in SpaceX came from the company’s $10 billion investment in Musk’s xAI as part of a $20 billion round in January, according to a CNBC report citing a person familiar with the matter. SpaceX subsequently acquired xAI in February in a deal valued at $1.25 trillion.
SpaceX stock closed at $140 on Friday, down from $170.86 at the end of June, bringing the value of Nvidia‘s shares to roughly $17.2 billion, CNBC reported. Nvidia is now the sixth-largest investor in SpaceX, according to FactSet data cited by the publication.
During SpaceX‘s first public earnings call last week, Musk highlighted the deepening partnership. “We’ve decided to build exclusively on Nvidia because we think its Vera Rubin architecture is the best architecture,” he said, adding that it is the best AI computer and that they greatly value their close cooperation.
Consequently, Musk expects SpaceX will receive a “significant allocation” of Nvidia‘s Vera Rubin GPUs next year. Meanwhile, retail sentiment on Stocktwits for SPCX remained ‘extremely bullish,’ while sentiment for NVDA was ‘neutral.’ NVDA stock has gained nearly 20% year-to-date, while SPCX shares have lost nearly 7% since going public in June.
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