SpaceX seeks $40 billion to buy Nvidia chips, FT reports

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.