Elon Musk Committed SpaceX to Building "Exclusively on Nvidia." Here's What That Locks In for SpaceX's Compute Bill.
The commitment covers the company's largest capital outlay, and now there is no second bidder for it.
Overview
SpaceX (NASDAQ:SPCX) held its first earnings call as a publicly traded company on Aug. 4, and CEO Elon Musk used it to place the company's largest capital outlay, artificial intelligence (AI) computing, in the hands of a single supplier.
Musk said, "going forward, we've decided to build exclusively on Nvidia because we think the Vera Rubin architecture is the best architecture. We think it's the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia. So, we're exclusive to Nvidia."
Details
Nvidia (NASDAQ:NVDA) shares closed up 3.4% the next day. Advanced Micro Devices, the closest alternative supplier of graphics processing units (GPUs) for AI, closed down 7% after reporting its own quarterly results that same afternoon.
Source
Originally published at www.fool.com.