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SpaceX is seeking to raise $40 billion to buy Nvidia artificial-intelligence chips, in a financing effort expected to be led by Apollo Global Management, the Financial Times reported on Tuesday, October 6, citing people familiar with the matter. The proposed package would combine about $10 billion in bank loans with $30 billion in investment-grade debt, according to the report.
The financing would support SpaceX’s expansion of computing infrastructure for AI, alongside its established rocket and satellite businesses. Apollo is expected to lead the effort and help place the debt with investors. The Financial Times reported that bond manager Pimco was among a small group of lenders in discussions; the transaction was expected to close in 2027.
The plan remains a reported fundraising effort, not a completed financing. SpaceX, Apollo and Nvidia did not immediately respond to Reuters’ requests for comment, while Pimco declined to comment, Reuters reported. Public details about the proposed debt’s terms, the number or type of chips involved, and the timetable for purchasing or deploying them have not been disclosed.
Proposed package combines loans and bonds
The reported structure divides the $40 billion into two forms of borrowing: bank loans and investment-grade debt. The larger portion, $30 billion, would be issued as investment-grade debt, while the remaining $10 billion would come from bank loans. Apollo’s expected role includes arranging the financing and distributing debt to a broad group of investors.
The reported scale would make the deal a substantial example of borrowing tied directly to AI hardware purchases. However, the available reports do not identify specific banks, bond maturities, interest rates, collateral arrangements or other terms. Nor do they say whether the full amount has been committed or remains dependent on investor demand and final negotiations.
AI computing plans drive chip demand
SpaceX’s planned purchase fits into a broader effort to expand the computing capacity used to develop and operate AI systems. Reuters reported that Elon Musk said the company intended to use Nvidia hardware exclusively in its data centers. Musk also said the Colossus 2 data center could more than double the number of Nvidia chips it uses by December.
SpaceX’s AI operations are connected to xAI, Musk’s artificial-intelligence company, which was folded into SpaceX before the latter’s initial public offering, according to the Investing.com report. The company uses its Colossus data centers to power Grok, and has signed agreements to rent computing capacity to other AI developers, including Anthropic and Google, that report said. The coverage did not specify whether the proposed $40 billion would fund capacity for those customers, Grok, or other planned workloads.
Debt demand meets a wider infrastructure funding push
The proposed borrowing comes as technology companies and investors seek large sums for data centers, processors and related AI infrastructure. Reuters cited a Morgan Stanley estimate that the sector would need $1.5 trillion in external financing by 2028. That estimate describes a broad industry funding requirement, not SpaceX’s own borrowing needs or a forecast of the company’s spending.
Nvidia has also been involved in efforts to mobilize capital for the sector. Reuters reported that in August the chipmaker partnered with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR on financing platforms intended to raise more than $500 billion for AI infrastructure projects. That initiative provides context for the range of investors and financial firms now involved in funding data-center expansion, but the reports do not establish that it is directly connected to SpaceX’s proposed financing.
Closing and terms remain uncertain
The Financial Times report said the SpaceX transaction was expected to close in 2027, but did not provide a specific date or say when the company would begin receiving the financing. As negotiations continue, the deal’s final size, composition and conditions may change. No public confirmation from the companies or lenders was available in the reports.
Reuters reported that SpaceX shares fell 1% in extended trading after the financing report, while Nvidia shares rose 0.5%. Those moves followed the news and do not by themselves indicate how investors assess the eventual cost, repayment schedule or returns associated with the proposed chip purchase. The central outstanding question is whether SpaceX can finalize the large debt package on the reported timetable and how the additional computing capacity will be used.
