Nvidia’s SpaceX stake grew out of an xAI deal, Yahoo Finance reports

Nvidia’s filing and how the stake appeared

According to Yahoo Finance, Nvidia is usually known for selling chips rather than for what it owns. That changed after its latest stock filing showed a large position in Elon Musk’s SpaceX. Yahoo Finance reports that the stake is worth roughly $18 billion based on recent trading, though the June 30 value in the filing was about $21 billion. The filing was submitted on August 14 and showed about 122.8 million SpaceX shares. Yahoo Finance says that made SpaceX Nvidia’s second-largest disclosed holding, behind Intel. The Intel position is separate and was built from 214.7 million shares Nvidia bought late last year.

How xAI shares became SpaceX shares

Yahoo Finance says Nvidia did not buy SpaceX shares directly in the market. Instead, it joined xAI’s $20 billion Series E funding round in January as one of several investors. In February, SpaceX bought xAI in an all-stock transaction, and Nvidia’s xAI position was turned into SpaceX shares. Yahoo Finance notes that the stake’s value has moved since then. SpaceX shares were around $147 on October 23, which would place Nvidia’s holding at about $18 billion. The stock was priced at $135 in its June IPO, opened at $150 on its Nasdaq debut, and later reached a record above $225.

SpaceX’s AI business and recent results

Yahoo Finance says the investment fits a broader pattern for Nvidia, which often invests in AI-related companies that are also customers or partners. In the filing, SpaceX ranked ahead of cloud provider CoreWeave and behind only Intel. Yahoo Finance reports that SpaceX’s latest results help explain why the stake may no longer seem unusual. In the third quarter, revenue rose 161% to $14.6 billion, above analyst expectations, and the company moved from a year-earlier loss to a $4.4 billion profit. Most of the growth came from its AI unit, now called Super Intelligence, which generated $7.56 billion, more than nine times the revenue it had a year earlier and more than half of SpaceX’s total sales.

Where SpaceX’s revenue comes from

According to Yahoo Finance, most of the Super Intelligence revenue comes from renting data-center computing power to companies such as Anthropic and Google. The unit also includes the Grok chatbot, X, and the coding tool Cursor, according to SpaceX’s third-quarter filing. Musk called the moment an “inflection moment,” Yahoo Finance reports. Starlink and rockets still matter, but they are no longer the main source of sales. The connectivity segment, mostly Starlink, brought in $5.25 billion, and the space segment added $1.77 billion. SpaceX also guided for first-quarter 2027 revenue of $33 billion to $37 billion.

Musk’s plans to buy more Nvidia hardware

Yahoo Finance reports that SpaceX’s customer contracts are very large. Anthropic agreed to pay $1.25 billion a month through May 2029 for computing power, and Google committed to $920 million a month for access to about 110,000 Nvidia GPUs, according to TheStreet. Musk has said SpaceX’s annual recurring revenue could reach $500 billion to $1 trillion by the end of 2027, which Yahoo Finance notes is far above analysts’ roughly $110 billion forecast for full-year 2027 revenue. On SpaceX’s first earnings call in August, Musk said the company would build its AI services only on Nvidia systems. He said, “So we're exclusive to Nvidia,” according to The Motley Fool. Yahoo Finance says Nvidia shares rose more than 4% that day. Musk later said SpaceX’s new computing capacity next year would mostly use Nvidia’s Vera Rubin systems.

Risks, spending, and what could happen next

Yahoo Finance says Musk announced on October 25 that SpaceX had closed $40 billion in debt financing to buy GPUs. He said the debt is mainly callable and would fund GPU purchases arriving in the first and second quarters. He linked the financing to SpaceX’s investment-grade rating and revenue from Starlink and launches. Musk also suggested that smaller neocloud companies could face consolidation and said SpaceX could rent out its computing power, while not being interested in buying those rivals. Yahoo Finance says Nvidia stands to benefit both as a supplier of the chips SpaceX wants and as an owner of part of the company. Still, the report notes risks: SpaceX spent $19.6 billion on capital projects in the third quarter and expects to spend $35 billion to $40 billion in the fourth, mostly on AI and data centers. SpaceX’s finance chief said the new capacity pays for itself in under a year at current prices, but Yahoo Finance notes that this depends on rental rates holding up. Musk has also said SpaceX plans to launch Vera Rubin systems into space next year. According to Yahoo Finance, if those plans succeed, Nvidia’s stake could be worth more than it is now; if they do not, the same customer could become a problem for Nvidia.