SpaceX is positioning itself as a dedicated single-supplier operation for its chip needs.

During the firm's earnings discussion on Wednesday, CEO Elon Musk confirmed plans to source all graphics processing units exclusively from one provider.

"Moving ahead, we have chosen to develop solely around Nvidia since we view the Vera Rubin design as the top option," Musk noted during the session on compute resources. "We see it as the leading AI system, and we highly appreciate our strong collaboration and ties at multiple levels with Nvidia. Thus we are dedicated solely to Nvidia."

He noted further that SpaceX expects to obtain a large portion of Nvidia GPUs in the coming year, suggesting the space firm may represent a meaningful part of the chipmaker's income.

Nvidia serves as an important tech ally for both of Musk's listed firms, Tesla and SpaceX, providing GPU setups that enable AI training, modeling, and high-end processing. While Tesla has poured resources into its own AI processors, it still relies on Nvidia GPUs for select AI and server tasks.

After the session, Musk reinforced his pledge to Nvidia by repeating the statement on X.

In a note posted Wednesday evening, he stated: "SpaceX has pledged to rely on Nvidia GPUs only since they rank as the finest."

A dedicated agreement with Nvidia excludes competing chip firms such as Intel, AMD, and Broadcom. The move also goes against the usual spread-out approach that major tech players adopt to limit exposure to supply issues or reliance on one vendor.

'Top-tier' offerings

Musk and his organizations have earned comparable praise from Nvidia in exchange.

Nvidia CEO Jensen Huang has often hailed Musk as a "remarkable engineer" and noted that Nvidia conducts substantial work with Tesla and SpaceX's xAI. He has described Musk's efforts on xAI's Grok and Tesla items as "top-tier."

On Wednesday, the space firm released its initial quarterly results as a public entity, exceeding income forecasts. It stated that second-quarter revenue climbed 92 percent from the prior year to $7.8 billion, fueled by expansion in AI facilities and Starlink, its satellite broadband service.

During the session, Musk indicated the firm targets a $100 billion yearly revenue pace by year-end, though analysts stayed wary about spending rates and effects on short-term earnings.

"I believe it could exceed that," Musk remarked, noting the $100 billion target applies "if we take no further steps."

Despite the revenue figures, investors zeroed in on elevated AI outlays and a $541 million shortfall, pushing shares lower by over 7 percent in after-hours trading.