Nvidia (NVDA) and SpaceX (SPCX) Stock Soars on Space AI Data Center Alliance

▲ Nvidia (NVDA), SpaceX (SPCX), space technology, AI satellite/AI-generated image

Nvidia (NVDA) and SpaceX (SPCX) announced their collaboration on space AI satellites, causing their stock prices to jump by 3.03% and 8.67%, respectively.

According to cryptocurrency media BeInCrypto on August 4 (local time), SpaceX entrusted Nvidia with the design of the computing payload for its Starmind AI1 satellites. All Starmind satellites will be equipped with Nvidia's next-generation Rubin GPUs and Vera CPUs. Starmind is SpaceX's project to build data center-class AI computing facilities in Earth's orbit.

On the afternoon of the collaboration announcement, Nvidia's stock price rose by 3.03% to $212.91. SpaceX's stock price surged by 8.67% to $124.46. Although SpaceX's stock price was still 35% lower than its early July peak even after being included in the Nasdaq 100, it expanded its gains immediately after the announcement of the collaboration with Nvidia.

Nvidia unveiled its space computing business on March 16, announcing Aetherflux, Axiom Space, Kepler Communications, Planet Labs, Sophia Space, and Starcloud as initial partners. SpaceX, which was missing from that list, has now joined Nvidia's space computing business as a customer through this new agreement. Nvidia stated that the Space1 Vera Rubin module offers up to 25 times higher AI computing performance than the H100 GPU. Mass shipments are set to begin this fall.

In January, SpaceX filed an application with the U.S. Federal Communications Commission (FCC) to deploy up to 1 million orbital data center satellites. The proposed operating altitude in the application is 500-2,000 km above the ground. The design also includes connecting the satellites with a petabit-class laser communication network. Considering that there are approximately 15,000 satellites currently operating in Earth's orbit, SpaceX's plan is 66 times larger in scale.

The construction of such a large-scale satellite network still faces financial burdens and regulatory approvals. SpaceX's AI division recorded $3.2 billion in revenue last year but incurred losses of $6.4 billion. The FCC received the application in February but has not yet reached a conclusion. Until regulatory approval is granted, the Starmind project has not secured the necessary permits for satellite deployment.

[Article Key Summary]

-Nvidia and SpaceX are collaborating on the development of AI computing equipment for Starmind AI1 satellites.

-On the day of the collaboration announcement, Nvidia's stock price rose by 3.03%, and SpaceX's stock price rose by 8.67%.

-SpaceX's plan for up to 1 million satellites still faces a $6.4 billion loss burden and regulatory approval.

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