Nvidia acquired $21 billion worth of SpaceX shares
The American company Nvidia owns 122.8 million shares of SpaceX, which were valued at approximately $21 billion as of the end of the second quarter. The company acquired this stake following an investment in the startup xAI, which later merged with SpaceX. Nvidia is now one of the largest investors in Elon Musk’s space company.
Nvidia disclosed the size of its stake in its second-quarter financial report. The company holds approximately 122.8 million shares of SpaceX. Their total value was approximately $21 billion.
Based on this figure, Nvidia ranks sixth among SpaceX’s largest investors. At the same time, Intel remains the largest company in its investment portfolio. Nvidia’s stake in Intel is valued at approximately $22 billion. For Nvidia, this investment resulted from a deal with another of Elon Musk’s businesses.
How Did Nvidia Acquire SpaceX Shares?
In January of this year, Nvidia invested $10 billion in the startup xAI, which was still a separate company at the time. The startup developed artificial intelligence technologies and was founded by Elon Musk.
Later, xAI merged with SpaceX. As a result of the deal, Nvidia acquired a stake in the merged company. Thus, the AI chip manufacturer found itself among SpaceX’s major investors, even though its initial investment was directed specifically at xAI.
SpaceX Merged with xAI
SpaceX acquired xAI in February of this year. The deal was valued at $1.25 trillion. Following this, Musk’s businesses effectively came under a single umbrella. For Nvidia, this meant that its previous investment in xAI had turned into a significant stake in SpaceX. This deal also demonstrated just how closely Musk’s space business and his artificial intelligence projects are now intertwined.
SpaceX shares have fallen
At the same time, SpaceX’s stock price has recently declined. On Friday, shares closed at $140. By comparison, at the end of June, shares were trading at $170.86. Thus, their price has dropped significantly over this period.
Due to the change in stock price, the valuation of Nvidia’s stake may also fluctuate. The cited figure of $21 billion refers to the value of the stake as of the end of the second quarter. Despite this, Nvidia remains one of SpaceX’s largest investors. Its stake demonstrates the significant interest tech companies have in businesses related to artificial intelligence, space, and satellite technologies, according to CNBC.
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