SpaceX CEO Elon Musk announced plans to build an exclusive relationship with Nvidia, projecting that his aerospace company will secure a massive share of Nvidia’s graphics processing unit (GPU) production by 2027. Musk detailed during an earnings call that SpaceX intends to rely heavily on Nvidia’s next-generation Vera Rubin architecture to scale its artificial intelligence computing operations rapidly.
GPU Shortages Threaten Neocloud Providers
According to BNP Paribas analyst Stefan Slowinski, persistent GPU shortages will likely remain a primary bottleneck for AI expansion over the next 12 to 18 months. Bernstein analysts warn that Nvidia may prioritize well-capitalized giants like SpaceX when allocating scarce hardware, potentially pushing neocloud firms to the back of the line despite Nvidia’s prior equity investments in those startups.
CoreWeave maintains close ties to chip designer Nvidia, which previously took a stake in the infrastructure firm and backed a contract guaranteeing unsold data center capacity. Similarly, Nebius counts Nvidia as a major investor holding a 9.3 percent stake. As the AI infrastructure race shifts toward raw capital power for procuring power and chips, the entrance of larger, better-funded buyers introduces new execution risks for these emerging cloud platforms.
Financial Pressures Ahead of Earnings Reports
CoreWeave and Nebius face immediate financial scrutiny as both companies prepare to release their quarterly earnings reports. Wall Street analysts expect CoreWeave to post more than double year-over-year revenue growth, though concerns persist regarding widening net losses and ballooning debt loads. Market forecasts indicate CoreWeave’s total debt could expand from the first quarter.
Nebius faces a similar financial trajectory, with consensus estimates pointing to a widening net loss paired with a 442 percent surge in quarterly revenue. For both firms, investor focus will center less on headline revenue expansion and more on how management teams plan to secure stable GPU allotments and fund massive data center construction pipelines moving forward.
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