SpaceX's $40B Nvidia Chip Plan Would Help Fuel AI Growth
Dow Jones
Yesterday
0917 ET - Elon Musk needs to move quickly to build out SpaceX's artificial-intelligence infrastructure, Yorkville Ives analysts say in a research note. Recent reports say SpaceX is in discussions with banks and investment-management firms to borrow $40 billion to purchase chips from Nvidia, and the analysts accordingly view this as a smart strategic move. "It fuels the flywheel between launch, Starlink, and AI: each business lowers the cost or expands the demand of the other two, and the AI segment is where the next leg of growth comes from as contracted cloud capacity converts into revenue," the analysts write. The move would likely be well received by investors, they add, given the scale of the AI-related cloud buildout ahead for SpaceX.
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