Sources: SpaceX is seeking to raise $40B, including ~$10B in bank loans and ~$30B in investment-grade debt, to purchase Nvidia chips, in a deal led by Apollo (Financial Times)
Blockbuster debt deal is the latest sign of the vast spending on chips and other infrastructure underpinning AI
SpaceX is in the process of raising $40 billion in an effort led by Apollo Global, according to the Financial Times. The funding will be used to purchase Nvidia chips, with $10 billion coming from bank loans and $30 billion in investment-grade debt. Apollo is expected to lead the deal and assist in marketing the debt, as reported by the FT.
Pimco is among a select group of lenders in discussions to fund the deal. The massive fundraise underscores the significant investments being directed towards data centers, chips, and other infrastructure needed to power AI technology.
SpaceX has a close relationship with Nvidia, with CEO Elon Musk stating that the company will exclusively use Nvidia chips in its Colossus data centers. SpaceX's flagship Grok AI, developed as part of Musk's xAI startup, is powered by Colossus. The company has also signed agreements to rent out computing capacity from Colossus to major AI developers, including Anthropic and Google's Alphabet.
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- SpaceX seeks US$40bil to buy Nvidia chips freemalaysiatoday.com
- SpaceX seeks to raise $40 bln to buy Nvidia chips- FT investing.com
- SpaceX seeks $40 billion to buy Nvidia chips, FT reports channelnewsasia.com
- SpaceX looks to raise $40bn to buy Nvidia chips in financing led by Apollo ft.com
- SpaceX seeks $40b for Nvidia chips: sources techinasia.com
