This article first appeared on GuruFocus.
SpaceX (NASDAQ:SPCX) shares climbed 3% on Tuesday after Elon Musk outlined plans to begin deploying AI-focused satellites in late 2027.
The first spacecraft are expected to use Nvidia (NASDAQ:NVDA) technology, with Musk projecting that the orbital computing system could reach substantial scale during 2028. He said the satellite data centers are being designed to use less space and weight than traditional computing infrastructure.
SpaceX has also sought approval from the Federal Communications Commission to deploy as many as 1 million satellites equipped for AI workloads. The proposed network would move computing capacity into orbit rather than relying solely on ground-based facilities.
Nvidia was selected earlier this month as the exclusive technology supplier for SpaceX’s planned orbital computing infrastructure. Its Vera central processing units are expected to provide computing capacity for Grok and future AI agent systems.
The project gives SpaceX another potential use for its satellite infrastructure while expanding Nvidia’s role in AI computing beyond conventional data centers.
The planned AI satellite network could add a new growth angle for SpaceX if the company secures regulatory approval and meets its launch targets.