SpaceX Seeks $40 Billion for Nvidia Chips as Apollo Leads Debt Package
Updated
Updated · Financial Times · Oct 6
SpaceX Seeks $40 Billion for Nvidia Chips as Apollo Leads Debt Package
3 articles · Updated · Financial Times · Oct 6
Summary
SpaceX is lining up about $40 billion to fund a major Nvidia chip purchase, with Apollo Global Management expected to lead a financing slated to close in 2027.
The package would include roughly $10 billion in bank loans and $30 billion in investment-grade debt, using SpaceX’s BBB rating to reach insurers and pension funds that avoid junk bonds.
Elon Musk has said SpaceX will build exclusively on Nvidia’s Vera Rubin architecture, deepening ties with the chipmaker as Nvidia faces rising competition in advanced AI semiconductors.
SpaceX’s debt pitch still faces investor scrutiny: bonds sold after its June IPO weakened on leverage and capital-spending concerns, and some lenders complained earlier materials on the chip plan were too thin.
The deal highlights the scale of AI infrastructure financing now emerging on Wall Street, after Apollo led a $35 billion Broadcom-related chip deal and Nvidia launched a $500 billion funding platform in August.
How will SpaceX's $40 billion debt gamble on orbital AI datacenters impact its long-term aerospace ambitions?
Could SpaceX's exclusive reliance on Nvidia chips create a critical vulnerability for its multi-billion-dollar orbital infrastructure?
With soaring AI capex and mounting debt, can SpaceX achieve profitability before its $40 billion financing closes in 2027?
SpaceX’s $40 Billion AI Infrastructure Push: How Circular Financing and Nvidia Are Reshaping the Global Compute Market
Overview
SpaceX is rapidly transforming from a space company into a major force in artificial intelligence by investing billions in AI compute infrastructure and raising $40 billion through a mix of loans and bonds. Leveraging its ability to build massive data centers quickly, SpaceX now leases computing power to top tech firms, generating over $3.4 billion per month and supporting its ambitious goals like Mars colonization. This growth is tightly linked to Nvidia, which holds a large equity stake in SpaceX and supplies exclusive hardware, creating a circular financial relationship. However, this concentration introduces systemic risks, regulatory scrutiny, and challenges for smaller AI startups.