SpaceX Seeks $40 Billion in Debt to Buy Nvidia Chips

SpaceX is reportedly in talks for about $40 billion in financing so it can keep buying Nvidia chips, according to The Financial Times. The package is said to be led by Apollo Global Management and split between roughly $10 billion in bank loans and $30 billion in investment-grade debt. Pimco is among the lenders in the mix. The deal is expected to close in 2027.

The money would go into SpaceX’s A.I. data centers, not rockets. Elon Musk has said the company will use Nvidia hardware exclusively, and the chip count at the Colossus 2 site alone is set to more than double by December. Since merging with xAI, now operating as SpaceXAI, the company has become one of the biggest buyers of A.I. computing power.

This is not Apollo’s first pass at Musk-linked chip financing. Earlier this year, it backed two deals worth about $3.5 billion each for xAI’s Nvidia clusters. Apollo is also working with Nvidia on consortia designed to finance hundreds of billions of dollars in A.I. infrastructure. And Nvidia already has skin in the game: its stake in SpaceX was most recently worth about $21 billion.

SpaceX is not keeping all of that computing power for itself, either. It rents part of it to third parties, including the entire Colossus 1 data center to Anthropic since the spring. The company’s own quarterly results showed $15.8 billion spent on computing infrastructure in the second quarter alone. Investors did not exactly cheer the plan: SpaceX shares slipped about 1 percent to just under $170 after the report, while Nvidia rose 0.5 percent.

The bigger picture is easy to see. Meta has already lined up $27 billion with Blue Owl for its Hyperion data center, cloud firms like CoreWeave have long borrowed against GPUs, and big tech issued about $200 billion in investment-grade bonds in the first half of the year for A.I. buildouts. Morgan Stanley says A.I. infrastructure will need about $1.5 trillion in outside financing by 2028. Debt, apparently, is the new power supply.