SpaceX Reports 830% AI Revenue Growth and Nvidia Exclusivity

Space Exploration Technologies reported an 830% revenue increase in its Super Intelligence (SI) division, reaching $7.6 billion. This growth was driven in part by the acquisition of xAI and the deployment of AI applications including the Grok large language model and Grok Bots. Despite the revenue surge, the division maintained a modest 5.7% operating margin, yielding $431 million in operating income.

CEO Elon Musk announced that the company will exclusively use Nvidia's Vera Rubin architecture for its AI computing needs, describing it as the best AI computer. This strategic decision distinguishes SpaceX from other AI players like AMD, whose data center division generated $6.7 billion in Q2. While Nvidia reported a significantly higher operating margin of 66% and a more cost-effective forward price-to-sales ratio of 12 compared to SpaceX's 41, the two companies maintain a close partnership.

Musk projects that SpaceX will generate between $500 billion and $1 trillion in revenue next year, primarily fueled by its AI applications. The company continues to pivot toward AI applications while relying on Nvidia for the underlying infrastructure.