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Nvidia (NasdaqGS: NVDA) features in a planned $40b SpaceX fundraising led by Apollo to secure exclusive access to Nvidia chips.
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SpaceX is seeking US$40b in new capital to expand its Nvidia-powered compute footprint for large scale AI and space data projects.
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OpenAI has chosen Nvidia hardware over Cerebras to run its new Ultrafast AI model, reinforcing Nvidia’s role in large model training.
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SpaceX’s US$40b chip push and OpenAI’s Ultrafast model decision matter, but investors need to look beyond this single headline. We have also flagged 2 warning signs (1 major) for NVIDIA.
These developments sit inside a wider build out of AI plumbing across data centers and cloud platforms, which points directly to 91 AI infrastructure stocks.
NVIDIA operates as a data center scale AI infrastructure provider, supplying the compute backbone that large customers use to train and run complex models. For investors, that places the business at the hardware layer of AI, where long term contracts and capacity planning often matter as much as chip design headlines.
4 things going right for NVIDIA that this headline doesn’t cover.
Why does SpaceX’s US$40b Nvidia chip plan matter for NVIDIA’s core business?
SpaceX wants to more than double its Nvidia chip capacity and lock in exclusive access, which effectively treats Nvidia as the default compute layer for its AI and space data projects. That lines up with Nvidia’s role supplying full data center scale infrastructure rather than just selling chips into one off builds.
Does OpenAI choosing Nvidia over Cerebras change the NVIDIA Narrative?
OpenAI’s decision reinforces the Narrative catalyst that Nvidia’s full stack platform, anchored by CUDA and TensorRT, keeps large AI customers on its hardware and software. It supports the view that expanding software ecosystems and model partnerships deepen lock in even as risks like customer ASIC efforts and export controls stay in focus.
See how these catalysts shape NVIDIA’s path to a $328 fair value.
What needs to happen next for this SpaceX and OpenAI news to really move the needle for NVIDIA?
The key test is whether these headlines turn into disclosed, multi year capacity commitments that show up in data center segment demand and long term supply agreements. Investors can watch for concrete contract details from SpaceX and further large scale model deployments from OpenAI that explicitly reference new Nvidia platforms such as Blackwell or Rubin.