SpaceX Seeks $40 Billion Financing for Nvidia AI Chip Purchase

Elon Musk’s SpaceX is seeking a massive $40 billion in financing to purchase Nvidia chips, which could be one of the largest debt-funded AI hardware purchases ever made. The proposed deal involves bank loans and investment-grade bonds, with Apollo Global Management leading the transaction.

According to reports from Bloomberg and the Financial Times, talks between SpaceX and potential investors are still at an early stage. The financing is expected to close in 2027, but neither SpaceX nor Nvidia has commented on the matter so far. Apollo Global Management and Pimco are among the investors considering the debt.

The proposed deal highlights the significant capital required to build AI infrastructure. Companies like SpaceX spend heavily on processors, data centers, and power equipment to support their AI operations. This trend is not new, as banks and asset managers have been providing capital for AI hardware purchases rather than requiring technology companies to fund them entirely themselves.

Apollo Global Management has become a major player in this market, while Nvidia is working with financial firms on broader financing structures to help customers fund the infrastructure needed to deploy its processors. This move could streamline the process of acquiring and deploying AI hardware for companies like SpaceX.

SpaceX’s expansion into computing operations began when it incorporated xAI, Musk’s AI business. The company has stated that its data centers will exclusively use Nvidia hardware. In a recent update, Musk revealed that Colossus 2, an AI computing cluster in Tennessee, already contains 110,000 Nvidia GB200 chips and 440,000 GB300 chips.

Musk also mentioned that up to 660,000 additional GB300s could be added by December, potentially taking the total number of Nvidia chips at Colossus 2 beyond 1.2 million. This scale of computing capacity is aimed at supporting AI services like Grok and underscores the significant investment SpaceX is making in its AI infrastructure.

The proposed deal comes after SpaceX completed a massive $86 billion initial public offering (IPO) in June, followed by a $25 billion bond sale. These transactions have increased scrutiny on SpaceX’s spending and debt levels.