SpaceX seeks $40 billion financing to expand Nvidia chip purchases

Wednesday 07 - 19:53

By: Azzat Manal

SpaceX seeks $40 billion financing to expand Nvidia chip purchases

SpaceX is reportedly seeking up to $40 billion in financing to purchase advanced artificial intelligence chips from Nvidia, highlighting the enormous amount of capital now being committed to AI computing infrastructure.

According to people familiar with the matter cited by Reuters and the Financial Times, the Elon Musk-led company is considering raising around $10 billion through bank loans and a further $30 billion through investment-grade debt. Apollo Global Management is expected to lead the financing effort and help distribute the debt among a wider group of investors.

PIMCO is among the financial institutions reportedly involved in discussions over the proposed financing. SpaceX, Nvidia and Apollo did not immediately provide comments on the reported transaction, while PIMCO declined to comment.

The planned funding would support a major purchase of Nvidia's AI processors as SpaceX expands its ambitions in data centers and artificial intelligence. The scale of the proposed transaction reflects the rapidly increasing cost of computing power required to develop and operate advanced AI systems.

The financing comes as technology companies and investors continue to pour vast sums into data centers, specialized processors and energy infrastructure. Morgan Stanley estimates that AI infrastructure could require around $1.5 trillion in external financing by 2028, underscoring the growing dependence of the sector on banks, bond markets and private capital.

SpaceX has increasingly tied its future technology investments to Nvidia's hardware. Musk has said the company intends to rely exclusively on Nvidia technology for its AI data centers, while its AI operations are expected to significantly increase their use of Nvidia processors.

The reported financing also illustrates the expanding relationship between Nvidia and major financial institutions. In August, Nvidia announced partnerships with several Wall Street firms, including Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR, as part of an initiative aimed at mobilizing more than $500 billion for AI infrastructure.

SpaceX's financing plans come after the company raised substantial amounts of capital in 2026. The company went public in June in a reported $86 billion initial public offering and subsequently accessed the bond market, giving it additional funding capacity for its ambitious expansion plans.

Investors are nevertheless paying close attention to the amount of capital being committed to AI infrastructure. While demand for advanced chips remains strong, concerns have emerged over the long-term value of computing hardware, the level of corporate debt and whether expected AI revenues will justify the enormous investments being made.

The reported SpaceX transaction is expected to close in 2027 if the financing arrangements are completed. For Nvidia, a deal of this size would further reinforce its position at the center of the AI infrastructure boom, while for SpaceX it would provide additional resources to expand computing capacity alongside its established space business.

The proposed $40 billion financing therefore illustrates how the boundaries between aerospace, artificial intelligence and financial markets are increasingly becoming intertwined, with major technology companies seeking unprecedented amounts of capital to secure the computing resources needed for the next phase of AI development.