Nvidia's Second-Largest Holding Revealed: Elon Musk's SpaceX

Nvidia revealed on Friday that it holds 128.8 million Class A shares in Elon Musk's SpaceX as of the end of the second quarter. This stake makes SpaceX Nvidia's second-largest holding, trailing only Intel.

The value of Nvidia's SpaceX shares was approximately $21 billion based on the stock price at the end of June. However, following a subsequent decline, the stake's value has fallen to about $17.2 billion as of Friday's closing price of $140 per share. This investment represents a significant return on Nvidia's initial $5 billion investment in Intel less than a year ago.

According to sources familiar with the matter, Nvidia's SpaceX shares originated from a $10 billion investment made in Musk's xAI in January. xAI was part of a $20 billion funding round at the time. SpaceX acquired xAI for a $1.25 trillion valuation in February.

Musk stated during SpaceX's second-quarter earnings call that the company will exclusively use Nvidia chips in its AI data centers, citing Nvidia's GPUs as having the "optimal architecture" for training AI models. He also anticipates SpaceX will receive a "significant allocation" of Nvidia's Vera Rubin GPUs next year.