SpaceX Chooses NVIDIA Chips, AMD Responds

According to Tesla and SpaceX CEO Elon Musk’s announcement during the company’s earnings call on August 4, SpaceX’s future artificial intelligence (AI) infrastructure will exclusively adopt NVIDIA chips and technologies.

The announcement immediately boosted NVIDIA’s market performance, with its shares closing 3.4% higher on August 5. Meanwhile, rival AMD’s stock price dropped more than 7% on the same day. Although the decline was partly attributed to AMD’s third-quarter outlook falling short of the most optimistic market expectations, analysts also linked the pressure to Musk’s latest decision to rely solely on NVIDIA’s AI hardware for SpaceX’s future infrastructure.

During the earnings call, Musk stated that SpaceX selected NVIDIA as its exclusive AI infrastructure partner because NVIDIA’s Vera Rubin architecture currently represents one of the most advanced AI computing platforms available. He also praised the close collaboration and strong partnership between SpaceX and NVIDIA across multiple areas.

The decision marks a shift from Musk’s previous stance. In May 2025, Musk had indicated that his AI-related businesses would continue purchasing GPUs from major chip companies, including NVIDIA and AMD. However, AMD recently highlighted that eight of the world’s top 10 AI companies are running workloads on its Instinct GPU platform, including SpaceX’s internal SpaceX AI operations.

Musk also revealed SpaceX’s ambitious AI computing expansion plans. The company expects to achieve more than 2 GW of computing capacity by the end of 2026. By the end of 2027, SpaceX’s deployed computing capacity is projected to grow several times further, approaching 10 GW, significantly exceeding the industry benchmark of around 5 GW. Musk added that SpaceX has reached an agreement with NVIDIA to secure a substantial portion of NVIDIA’s GPU supply in 2027.

Despite the market reaction, AMD Chair and CEO Lisa Su remained confident in the company’s AI strategy. She said AMD respects Musk and his achievements, while emphasizing that the company looks forward to maintaining long-term cooperation with SpaceX. Su described SpaceX as a highly important technology company and expressed pride in AMD’s collaboration with the company across multiple fields. She also noted that AMD continues to maintain strong partnerships with many organizations in areas such as the space industry and other advanced technology markets.

The latest development highlights the intensifying competition in the AI chip sector, as leading technology companies expand their computing infrastructure and secure access to high-performance AI accelerators. NVIDIA’s growing partnership with SpaceX further strengthens its position in the AI hardware market, while AMD continues to expand its Instinct GPU ecosystem and pursue broader AI computing opportunities.