SpaceX Seeks $40 Billion Apollo-Led Financing to Buy Nvidia Chips
- SpaceX is seeking $40 billion in financing led by Apollo Global Management to purchase Nvidia chips, according to reports on Tuesday, underscoring demand for AI computing power.
- The financing structure comprises about $10 billion in bank loans and $30 billion in investment-grade debt, with Apollo expected to lead the deal and sell debt to investors including Pacific Investment Management.
- Tech companies are investing and borrowing hundreds of billions of dollars to build and lease giant data centres full of chips, as worldwide expansion sends costs for land and power-generation equipment soaring.
- Musk said in September his Memphis-area Colossus 2 cluster, holding 110,000 Nvidia GB200 chips and 440,000 GB300s, may more than double its count by year-end, with 220,000 GB300s due next week.
- Following an August partnership where Nvidia tapped investment giants to source $500 billion for AI infrastructure, the SpaceX deal is expected to close in 2027, aligning with efforts to create dedicated capital pools for Nvidia customers.
134 Articles
134 Articles
SpaceX in talks to raise $40 billion in loans for Nvidia chips: Report
Elon Musk's SpaceX is aiming to raise $40 billion in bank loans and debt to further its purchases of AI chips from Nvidia, according to a Financial Times report citing sources close to the talks.
SpaceX Musk is negotiating a $40 billion loan for Nvidia chips <p>SpaceX could attract up to $40 billion from banks and investors to buy Nvidia chips. The deal will be one of the largest debt transactions in the history of AI.</p>
SpaceX is seeking about $40 billion to buy Nvidia chips in a deal it is preparing with Apollo Global Management leading the way. The Financial Times reported the plans, citing people familiar with the matter. Reuters could not immediately confirm the information. About $10 billion is expected to be raised through bank loans and another $30 billion through investment-grade debt. Apollo is expected to lead the process and help offer the debt instr…
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