SpaceX Plans to Raise $40 Billion to Purchase Nvidia Chips — FT
Elon Musk's company is counting on bank loans and debt financing to purchase cutting-edge microchips; Apollo will lead the deal, the Financial Times has learned
Photo: SpaceX / Unsplash
Elon Musk’s SpaceX is seeking to raise $40 billion to purchase Nvidia chips. The deal is expected to be led by the investment firm Apollo Global Management, the Financial Times reports, citing sources familiar with the matter. The deal involves approximately $10 billion in bank loans and $30 billion in investment-grade debt. The deal is expected to close in 2027, according to the FT’s sources.
On October 6, SpaceX shares fell 1.2% in after-hours trading following the news, while Nvidia shares, on the other hand, rose 0.35%, and Apollo shares remained unchanged; the previous day, they had gained 0.52%.
What else is known about the deal?
Apollo is expected to lead the offering and help sell the debt to a broad range of investors. According to sources cited by the publication, Pimco, one of the largest bond asset managers, is also participating in the negotiations on financing the deal as part of a small group of creditors.
Apollo and Pimco declined to comment, while SpaceX and Nvidia did not promptly respond to the publication's inquiries.
The aerospace and AI company’s plans to raise such funding demonstrate just how much capital is needed to invest in data centers, chips, and other AI infrastructure, the FT notes. SpaceX has a BBB credit rating—the second-lowest in the investment-grade category—which allows insurance and pension funds to purchase its debt, the newspaper reports.
In addition, the deal is expected to strengthen ties between SpaceX and Nvidia after Musk pledged to ramp up his use of the company's technology for his AI initiatives. It will also send a positive signal to Nvidia, which is facing growing competition from other chipmakers. Following the release of SpaceX’s first financial report as a public company, Musk has already stated that his projects will build their AI infrastructure “exclusively on Nvidia solutions” going forward; Musk called Nvidia’s new AI platform, Vera Rubin, the best on the market.
This article is being updated
This article was AI-translated and verified by a human editor
