Intel stays on Musk’s Terafab project despite TSM talks: CEO

Elon Musk's SpaceX is reportedly in negotiations with financial institutions and investors to secure a US$40 billion loan to purchase chips from Nvidia, highlighting the high demand for computing power among artificial intelligence developers. According to people familiar with the matter, Pacific Investment Management is among the investment managers considering the deal.

SpaceX's fundraising talks are still in the early stages and may not result in a completed agreement. Musk's AI, satellite, and rocket conglomerate aims to raise approximately US$10 billion in bank loans and US$30 billion in investment-grade debt to fund the chips. The financing, expected to close in 2027, is being led by Apollo Global Management.

The expansion of computing capacity has led to soaring costs for land, chips, and power generation equipment, resulting in numerous massive financing deals for tech companies and AI model developers. Elon Musk previously mentioned that Colossus 2, an AI computing cluster built by his xAI business, could more than double its current Nvidia chip count by the end of 2026.