Key takeaways
- SpaceX plans to raise $40 billion to buy Nvidia AI chips.
- Apollo is expected to lead the financing and arrange debt with investors.
- The deal is expected to close in 2027 amid rising AI infrastructure costs.
SpaceX plans to raise $40 billion in financing led by Apollo Global Management to buy Nvidia AI chips, the Financial Times reported Tuesday, as demand for AI computing infrastructure drives massive new investments.
SpaceX plans $40 billion financing
The Elon Musk-led space company is seeking about $10 billion in bank loans and $30 billion in investment-grade debt to fund the SpaceX Nvidia AI chips purchase, the FT reported, citing people familiar with the matter.
Apollo is expected to lead the financing and help place the debt with investors. Bond fund Pimco is among a small group of lenders discussing the deal, which is expected to close in 2027, according to the report.
SpaceX, Apollo and Nvidia did not immediately respond to Reuters requests for comment. Pimco declined to comment.
The SpaceX Nvidia AI chips financing plan highlights the growing cost of building the computing infrastructure needed to support artificial intelligence. Companies are racing to secure advanced processors as AI development expands.
AI infrastructure drives massive financing
Morgan Stanley estimates AI infrastructure will require $1.5 trillion in external financing by 2028. At the same time, lenders and investors are becoming more cautious about financing the industry’s rapid expansion.
The proposed SpaceX Nvidia AI chips financing would be among the largest individual funding efforts tied to AI computing hardware. The planned debt would give SpaceX access to Nvidia processors without requiring the company to fund the entire purchase from its existing cash resources.
SpaceX shares fell 1% in extended trading following the report, while Nvidia shares rose 0.5%.
Nvidia remains the dominant supplier of processors used for AI computing. In August, the chipmaker partnered with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR on financing platforms designed to mobilize more than $500 billion for AI infrastructure projects.
Musk expands Nvidia chip capacity
Musk said last month that xAI’s Colossus 2 data center could more than double the number of Nvidia chips it uses by December. The company plans to use Nvidia hardware exclusively for its data centers, according to Musk.
The push for additional Nvidia processors comes as technology companies and AI developers build larger data centers to support increasingly demanding AI systems.
Musk took SpaceX public in June in a record $86 billion initial public offering, according to Reuters. The company has since continued expanding its technology and infrastructure ambitions alongside its established rocket, spacecraft and Starlink operations.
The reported financing would give SpaceX substantial new borrowing capacity for Nvidia hardware while positioning Apollo to play a major role in arranging debt for one of the largest technology infrastructure projects currently under discussion
