SpaceX plans $40bn financing to buy Nvidia chips

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Company seeks $10bn in bank loans and $30bn in investment-grade debt to fund order

SpaceX is seeking to raise around $40 billion through a financing deal led by Apollo Global Management to fund the purchase of Nvidia chips, the Financial Times reported Wednesday.

The aerospace company is reportedly looking to secure about $10 billion through bank loans and another $30 billion through investment-grade debt to finance the massive chip order.

According to the Financial Times, private capital group Apollo is expected to lead the transaction and help distribute the debt among a broad group of investors.

Bond investment firm Pimco has also participated in discussions with a small group of lenders involved in financing the transaction, the report said.

Apollo and Pimco declined to comment, while SpaceX and Nvidia did not immediately respond to requests for comment.

The reported financing highlights the enormous sums being raised by technology companies to fund data centres, advanced chips and other infrastructure supporting artificial intelligence.

SpaceX’s BBB credit rating, described as the second-lowest investment-grade rating, could allow insurance companies and pension funds to participate in the debt offering.

The reported deal would further strengthen the relationship between SpaceX and Nvidia as Elon Musk expands the company’s AI ambitions.

During SpaceX’s August earnings call, Musk said the company had decided to build exclusively on Nvidia technology, citing the chipmaker’s Vera Rubin architecture as the best option for its needs.

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