Elon Musk Just Gave Nvidia Investors More Good News. Is the Stock a Buy?
Key PointsSpaceX is ordering a massive amount of Nvidia chips both this year and next.
Elon Musk has given investors of Nvidia (NASDAQ: NVDA) more positive news with updates on Colossus 2, the artificial intelligence (AI) computing cluster of SpaceX's (NASDAQ: SPCX) xAI unit. In a post on his X platform, formerly Twitter, Musk stated that Colossus 2 could double the number of Nvidia graphics processing units (GPUs) deployed by year-end.
The current Colossus 2 setup boasts 110,000 Nvidia GB200 chips and 440,000 GB300s. Musk announced that an additional 220,000 GB300 chips will become operational next week, followed by another 220,000 GPUs expected in November. He also expressed hope for receiving another 220,000 GB300s in late December, should the orders be fulfilled.
SpaceX's initial plan was to scale up to 1 million GPUs by the end of 2026, and with these additional orders, it appears they will surpass this goal. Reports indicate that xAI spent approximately $18 billion on its initial 550,000 GPUs. This latest order could prove even more valuable, considering it includes newer GB300 GPUs.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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