Nvidia vs. AMD: Elon Musk Picked a Side on the SpaceX Earnings Call

During SpaceX's earnings call, CEO Elon Musk announced that the aerospace and defense company has decided to build its artificial intelligence infrastructure exclusively on Nvidia hardware. Musk cited Nvidia's Vera Rubin architecture as the superior platform for AI computing, bypassing rival Advanced Micro Devices (AMD). This decision reinforces Nvidia's dominant market position across Musk's business ecosystem, including Tesla, as demand for large-scale GPU computing continues to surge. SpaceX's AI hosting business is quickly becoming a major revenue driver, supported by a massive agreement worth approximately $1.1 billion per month starting December 1. The company leases GPU capacity to third parties like Anthropic and Google Cloud across supercomputers powered by an estimated 325,000 Nvidia GPUs. The revenue from these contracts is expected to help SpaceX advance toward a $100 billion annual recurring revenue exit run rate, with plans to expand compute capacity from over two gigawatts to between five and 10 gigawatts next year. The exclusive partnership solidifies Nvidia's lead in the high-performance AI chip sector over competitors like AMD, supported by Nvidia's quarterly data center revenue of $89 billion, up 117% year over year.