By Obah Sylva
SpaceX is reportedly seeking to raise about $40 billion in financing, led by Apollo Global Management, to fund the purchase of Nvidia chips for its expanding artificial intelligence infrastructure, according to the Financial Times.
Key Highlights
- SpaceX is reportedly seeking about $40 billion to finance its AI infrastructure expansion.
- The proposed financing could include $10 billion in bank loans and $30 billion in investment-grade debt.
- Apollo Global Management is expected to arrange the financing and market the bonds to investors.
- Pimco is reportedly among lenders discussing participation in the transaction.
- The proposed deal could close in 2027, although discussions remain at an early stage.
- SpaceX plans to use Nvidia hardware exclusively in its data centres, according to reports.
SpaceX Seeks Massive AI Financing
According to the Financial Times, citing people familiar with the discussions, SpaceX is exploring a financing package worth approximately $40 billion to purchase Nvidia chips and support its artificial intelligence buildout.
The proposed package would reportedly consist of about $10 billion in bank loans and approximately $30 billion in investment-grade debt.
Apollo Global Management is expected to arrange the transaction and distribute the bonds among a broad group of investors.
Bond manager Pimco is also reportedly among a small group of lenders considering participation in the financing.
The transaction is currently expected to close in 2027, although Bloomberg, also citing people familiar with the matter, reported that discussions remain at an early stage and could ultimately end without a deal.
SpaceX Financing Could Rank Among Largest AI Deals
If completed, the proposed borrowing would rank among the largest debt financings linked to the global race to build artificial intelligence infrastructure.
The demand for financing has grown rapidly as technology companies invest billions of dollars in data centres, advanced processors and electricity infrastructure required to support AI systems.
Morgan Stanley has estimated that the AI infrastructure sector could require approximately $1.5 trillion in external financing by 2028, even as some lenders become increasingly cautious about the scale of investment.
Apollo was also involved in a financing partnership assembled by Nvidia in August to help source up to $500 billion for AI infrastructure.
Elon Musk Expands Nvidia Chip Deployment
The reported financing comes as Elon Musk continues to expand the computing infrastructure associated with his AI ambitions.
SpaceX reportedly went public in June through an $86 billion initial offering, described as a record US listing.
The company has said it intends to use Nvidia hardware exclusively in its data centres.
Musk also said last month that the Colossus 2 facility in the Memphis area could more than double its Nvidia chip count by December.
According to Musk, the facility already had approximately 110,000 GB200 chips and 440,000 GB300 chips, with additional batches of 220,000 GB300 chips expected in the following weeks.
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SpaceX AI Spending Surges
The scale of the proposed financing reflects the enormous capital requirements associated with SpaceX’s AI expansion.
SpaceX reportedly spent about $18.4 billion on capital expenditure in the second quarter, with approximately $15.8 billion directed towards AI infrastructure.
Smaller portions of the spending went towards its Starlink satellite internet operations and space business.
For the first half of the year, capital expenditure reportedly reached approximately $28.5 billion, compared with about $3.5 billion in operating cash flow.
The figures highlight the gap between the company’s infrastructure spending and the cash generated from operations.
SpaceX Financing Not Yet Confirmed
SpaceX shares declined in extended trading following reports of the proposed financing, while Nvidia shares moved higher.
However, neither SpaceX nor Apollo Global Management has publicly confirmed the reported $40 billion financing.
The reported transaction therefore remains subject to negotiations, financing conditions and investor demand, with the possibility that the deal could change or fail to materialise.
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