SpaceX Plans $40 Billion Financing for Nvidia Chip Purchase
SpaceX aims to secure $40 billion, led by Apollo, to acquire Nvidia AI chips, highlighting the growing demand for AI infrastructure.
SpaceX seeks $40 billion in financing for Nvidia chips.
Apollo Global Management is leading the funding effort.
The deal is expected to close in 2027 amid rising AI infrastructure costs.
SpaceX is set to raise $40 billion in financing, primarily led by Apollo Global Management, to purchase advanced AI chips from Nvidia. This significant funding initiative was reported by the Financial Times on October 6, 2026, and reflects the increasing capital demands associated with the rapid growth of artificial intelligence technologies.
The financing plan includes approximately $10 billion in bank loans and $30 billion in investment-grade debt. This move underscores the urgency for tech companies to secure cutting-edge processors necessary for AI development, as they strive to build the required computing infrastructure. According to Morgan Stanley, the AI sector will need around $1.5 trillion in external financing by 2028, indicating a robust demand for investment in this area despite growing caution from lenders and investors.
Apollo is expected to play a pivotal role in facilitating the SpaceX financing deal, working to attract a diverse group of investors to support the debt placement. Notably, bond fund Pimco is among a select group of lenders currently in discussions to provide financing. The transaction is anticipated to be finalized in 2027, marking a significant step for SpaceX in its ambitions to enhance its AI capabilities.
Following the announcement, shares of SpaceX experienced a 1% decline in after-hours trading, while Nvidia's stock saw a slight increase of 0.5%. Although SpaceX, Apollo, and Nvidia did not respond immediately to requests for comments, the implications of this financing are substantial for the tech industry, particularly as companies like SpaceX aim to leverage Nvidia's hardware exclusively for their data centers.
Elon Musk, who took SpaceX public in June 2026 with a record-breaking IPO valued at $86 billion, previously indicated that the company could significantly increase its usage of Nvidia chips by December. This financing initiative not only highlights SpaceX's commitment to advancing its AI infrastructure but also reflects the broader trend of tech companies racing to secure necessary resources in a rapidly evolving market.
