SpaceX strikes AI chip lease deal as Musk warns rivals
Elon Musk presented the US$40 billion GPU agreement with Apollo Global Management as proof of investor confidence in SpaceX over cloud market newcomers.
SpaceX secured a multi-billion dollar lease deal for powerful AI chips from private equity firm Apollo Global Management, according to a US Securities and Exchange Commission filing. The contract, expected to run for around five years, values at roughly US$40 billion, including interest and fees. The chips, Nvidia's highly advanced Vera Rubin GPUs, will be leased gradually beginning in the first half of 2027.
SpaceX absorbed AI company xAI in February, which operates massive data centres in Memphis housing hundreds of thousands of GPUs – essential for developing large AI models. Musk highlighted the deal as evidence of investor confidence in SpaceX, contrasting it with other emerging cloud market players.
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