SpaceX is in talks with banks and investors for roughly $40 billion in financing** to purchase **Nvidia AI chips**. The deal is led by **Apollo Global Management**, structured as about **$10 billion in bank loans and $30 billion in investment-grade debt.
PIMCO is considering participating and could be one of the few lenders providing financing. The deal is expected to close in 2027, though sources say talks are still early and may not result in an agreement.
After the news, SpaceX shares gave up gains in after-hours trading, falling as much as 1.8% before narrowing to about 1.2% at $169.79. Nvidia shares edged higher. The market reaction was split: SpaceX faces pressure from added debt, while Nvidia is seen as the demand-side beneficiary.
SpaceX holds a BBB credit rating, a lower investment-grade tier, meaning pension and insurance funds can buy its bonds, giving it broader funding access than junk-rated borrowers. But SpaceX posted $4.69 billion in Q1 revenue** against a **$4.28 billion loss, so debt pressure is real.
The funding is clearly aimed at Nvidia chips. Musk said on an August earnings call that SpaceX decided to build its AI systems entirely on Nvidia architecture, calling Vera Rubin the best choice. He also said last month that xAI's Colossus 2 data center will more than double its Nvidia chips by December, currently holding 110,000 GB200s and 440,000 GB300s.
SpaceX CFO Bret Johnsen told investors last month the company aims for $100 billion in annual recurring revenue**, with a new hosting agreement starting in December alone bringing about **$1.11 billion per month.
This deal is not isolated. Apollo previously led $35 billion in financing** for Broadcom's custom chip project, and Nvidia in August joined Apollo, BlackRock, Blackstone, and Goldman Sachs to build an AI infrastructure financing platform targeting over **$500 billion. Morgan Stanley estimates global AI infrastructure will need about $1.5 trillion in external financing by 2028.
ICgoodFind: SpaceX borrowing to buy chips shows the AI compute race has moved beyond cloud providers and model companies. For the chip supply chain, the customer profile is shifting from "who buys chips" to "who can carry chip debt until returns materialize."
ICgoodFind Summary: SpaceX's $40B chip financing underscores how AI compute demand is reshaping capital markets, with debt-funded chip purchases becoming a new supply chain dynamic.
