SpaceX seeks $40 billion financing led by Apollo to buy Nvidia chips, FT reports

SpaceX is seeking to raise $40 billion in financing, spearheaded by asset manager Apollo Global Management, to purchase Nvidia AI chips, according to the Financial Times. The company is looking to secure approximately $10 billion in bank loans and $30 billion in investment-grade debt for the chip order. This funding underscores the immense capital requirements of the AI boom, as tech firms rush to acquire advanced processors and expand their computing infrastructure for AI development.

Morgan Stanley estimates that AI infrastructure will necessitate $1.5 trillion in external financing by 2028, despite lenders and investors becoming more cautious about funding the industry's growth. Apollo is set to lead the SpaceX deal, assisting in placing the debt with a diverse group of investors, with bond fund Pimco among a select few lenders engaged in talks for financing.

The transaction is anticipated to conclude in 2027. SpaceX's stock dipped by 1% in extended trading following the report, while Nvidia's stock increased by 0.5%. Meanwhile, DeepSeek has partnered with Huawei to develop chip programming tools, reducing its reliance on Nvidia. SpaceX, Apollo, and Nvidia have not yet commented on the report, while Pimco also declined to comment.

Elon Musk, who took SpaceX public in June in a record $86 billion IPO, had previously stated that xAI's Colossus 2 data center could utilize more than double the number of Nvidia chips by December. The company plans to rely solely on Nvidia hardware to build its data centers. Nvidia, the leading provider of AI processors, partnered with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR in August to launch financing platforms aimed at mobilizing over $500 billion for AI infrastructure projects.