SpaceX seeks $40 billion financing led by Apollo to purchase Nvidia AI chips

Structure of the debt package

SpaceX is seeking $40 billion in financing arranged by Apollo Global Management to purchase artificial intelligence chips from Nvidia. The proposed structure combines approximately $10 billion in commercial bank loans with $30 billion in investment-grade debt. Apollo is slated to lead the transaction and place the debt across institutional investors, with Pacific Investment Management Co. (Pimco) in discussions among a small group of participating lenders. Talks remain preliminary and unconfirmed, with participants targeting a transaction close in 2027. Following the report, SpaceX shares fell 1.2% in extended trading to $169.79, while Nvidia stock rose 0.5%.

Hardware expansion and Colossus 2

The capital will fund hardware for Elon Musk's computing projects, centering on the Colossus 2 data center operated by xAI in Memphis. Colossus 2 currently houses 110,000 Nvidia GB200 processors and 440,000 GB300 processors. Musk stated in late September that the facility could more than double its chip count before the end of the year. Deployment plans schedule the addition of 220,000 GB300 units in early October, a second batch of 220,000 in November, and a third batch of 220,000 in late December. Musk described the company's reliance on Nvidia hardware during a corporate earnings call in August.

We've decided to build exclusively on Nvidia because we think the Vera Rubin architecture is the best architecture.

We think it's the best AI computer, and we greatly value our close co-operation and partnership on many levels with Nvidia.

SpaceX capital structure and market conditions

The borrowing initiative follows SpaceX's $86 billion initial public offering in June 2026. Less than two weeks after the public listing, the company issued $25 billion in high-grade bonds, supported by its BBB credit rating from credit agencies. Those 30-year notes maturing in 2056 subsequently traded around 85 cents on the dollar, yielding 2.27 percentage points above US Treasuries amid investor scrutiny over capital expenditures. Investors previously approached regarding chip financing noted that SpaceX provided only two-page summaries with limited financial disclosure. The BBB rating nevertheless permits regulated pension and insurance funds to buy the proposed debt.

External funding demands across the sector

The scale of the planned borrowing reflects a wider rise in external debt across technology groups constructing computing centers and power connections. Morgan Stanley estimates that artificial intelligence infrastructure will require $1.5 trillion in external financing by 2028, while Goldman Sachs projects annual ecosystem capital requirements reaching $1.2 trillion in 2027. A consortium of Wall Street banks is also preparing approximately $60 billion in chip loans for Anthropic and other model developers. In August, Nvidia partnered with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to establish financing platforms targeting over $500 billion for infrastructure projects. SpaceX, Apollo, and Nvidia did not immediately respond to requests for comment, while Pimco declined to comment.