Nvidia has made a $21 billion investment in SpaceX, making it the company’s second-largest publicly disclosed equity holding after Intel. This stake was not acquired through the open market but originated from a $10 billion investment Nvidia made in xAI, which later merged with SpaceX. The investment was made in January 2026 when Nvidia joined other investors in funding xAI’s Series E round. At the time, the move looked like a straightforward bet on an AI startup, but it evolved into a larger strategic play involving SpaceX. SpaceX’s acquisition of xAI in early 2026 brought Nvidia’s investment into the company’s broader ecosystem. Nvidia’s stake in SpaceX grew to $21 billion by the end of the second quarter, based on the company’s shareholding of 8 million shares.
SpaceX’s first earnings call as a public company confirmed that the company will exclusively use Nvidia chips for its AI infrastructure, according to 24/7 Wall St.. Elon Musk stated that Nvidia’s Vera Rubin architecture has the ‘best architecture’ for training and inference tasks. SpaceX plans to increase its AI compute capacity by the end of 2026 to nearly 10 gigawatts by late 2027. This significant expansion in AI infrastructure spending could be worth billions of dollars, though AMD is not expected to benefit from it.
Despite choosing Nvidia chips for its AI infrastructure, AMD has also invested in Musk’s company with a $565 million stake, according to a report from 24/7 Wall St.. AMD’s position is much smaller than Nvidia’s and lacks a direct chip-sales connection, making it more of a financial bet. The investment gives AMD exposure to the overall value of SpaceX, not just its AI hardware needs. SpaceX is expanding beyond AI into satellite manufacturing, rocket launches, and potentially orbital data centers. AMD’s investment in SpaceX does not depend on winning any chip contracts, but rather on the company’s overall growth. The financial strategy behind AMD’s stake is to participate in the broader value of SpaceX as it grows across multiple sectors.
Nvidia’s investment in SpaceX is not just about AI chips, but also reflects its growing role within Musk’s broader business ecosystem. Nvidia’s stake in SpaceX now ranks as the company’s second-largest disclosed equity holding, behind only its Intel investment. Together, Nvidia’s Intel and SpaceX positions account for almost 80% of the company’s publicly disclosed stock portfolio.
SpaceX’s IPO in June raised about $75 billion, bringing previously private holdings into the spotlight through 13F filings. Alphabet holds a larger SpaceX stake, reportedly around $70 billion, making it the biggest backer of the company. Nvidia stands out among SpaceX’s major shareholders because it is also the only one providing the chips that the company uses.
Investors should understand that Nvidia’s SpaceX stake is a bonus lottery ticket riding alongside its core chip business, not the main reason to invest in the company. The investment shows how chipmakers are increasingly backing the customers who buy their products. Nvidia’s financial strategy aligns with its role in powering AI infrastructure, even as it expands into space ventures, profitconfidential.com reported. SpaceX’s satellite internet constellation and missions to Mars are expected to drive demand for advanced data processing solutions. Nvidia’s Vera Rubin GPUs are set to play a key role in these projects, from satellite data analysis to spacecraft navigation. This collaboration is part of a broader trend where chipmakers embed themselves in emerging tech ecosystems. The partnership enhances SpaceX’s technological capabilities while solidifying Nvidia’s role in AI-driven space exploration.
IMAGE: Mr. Jensen Huang, the CEO of Nvidia met the Prime Minister, Shri Narendra Modi, at Prime Minister’s Office in New Delhi, India.. Photo: Prime Minister’s Office
/ Wikimedia, taken 2023-09-04, GODL-India