SpaceX seeking to raise US$40 billion to buy Nvidia chips: Financial Times
Apollo Global Management is expected to lead the deal and help sell the debt to investors.
Elon Musk's SpaceX is reportedly seeking to raise US$40 billion in financing to purchase Nvidia's chips, according to the Financial Times. The company plans to finance the purchase with US$10 billion in bank loans and US$30 billion in investment-grade debt, sources familiar with the matter told the newspaper. The transaction, expected to be led by Apollo Global Management, is anticipated to be finalized by 2027.
The financing move comes amid a surge in investments and borrowing by tech companies and AI developers to build and lease vast data centers filled with chips to power AI systems. This growing demand has caused the costs of land, chips, and power-generation equipment to skyrocket, leading to numerous massive financing deals. Neither SpaceX nor Nvidia responded to requests for comment on the report, though SpaceX shares fell slightly in postmarket trading following the Financial Times' announcement.
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Also reported by 5 other outlets
- 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
- 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) ft.com
- SpaceX seeks $40b for Nvidia chips: sources techinasia.com
