SpaceX is reportedly planning to raise as much as $40 billion to finance a massive purchase of Nvidia’s artificial intelligence (AI) chips, highlighting the enormous sums being committed to AI infrastructure as demand for computing power continues to surge.
According to the Financial Times, citing people familiar with the matter, asset manager Apollo Global Management is expected to lead the fundraising effort for Elon Musk’s space and technology company. The proposed financing would include around $10 billion in bank loans and another $30 billion in investment-grade debt.
The deal could become one of the largest financing efforts linked to AI infrastructure and underscores how companies are increasingly turning to debt and institutional investors to fund the computing capacity required to develop and operate advanced AI systems.
Credits: Mint
SpaceX Turns to Debt Markets for AI Expansion
The planned financing is reportedly tied to SpaceX’s efforts to purchase Nvidia processors for its expanding AI infrastructure. The company is expected to use the chips to support data-center operations connected to Musk’s broader AI ambitions.
Apollo is expected to help arrange and distribute the debt among a wide range of investors. Bond giant Pimco is reportedly among a small group of lenders in discussions to provide financing.
The transaction is expected to close in 2027, according to the Financial Times.
The scale of the proposed fundraising reflects the extraordinary cost of building AI computing infrastructure. Advanced Nvidia processors are among the most sought-after components in the AI industry, with technology companies racing to secure sufficient supplies as they expand data centers.
Morgan Stanley estimates that AI infrastructure could require around $1.5 trillion in external financing by 2028. The projection comes as investors and lenders have become increasingly cautious about the industry’s rapidly rising capital requirements.
Nvidia Chips at the Center of SpaceX’s AI Strategy
Nvidia’s processors have become a critical part of the global AI infrastructure buildout, and SpaceX appears to be preparing for a significant increase in its own chip requirements.
Musk said last month that xAI’s Colossus 2 data center could more than double the number of Nvidia chips it uses by December. SpaceX has also said it plans to use Nvidia hardware exclusively for its data centers.
The planned purchase would therefore represent a major commitment to Nvidia’s technology at a time when demand for its AI accelerators remains exceptionally strong.
For Nvidia, the potential SpaceX order would add another major customer to an already extensive list of companies investing billions of dollars in its AI processors. The company remains the dominant supplier of high-end AI chips used to train and operate increasingly sophisticated models.
Apollo Expands Role in AI Infrastructure Financing
Apollo’s involvement also highlights the growing role of large asset managers in financing the AI boom.
In August, Nvidia partnered with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR on financing platforms designed to mobilize more than $500 billion for AI infrastructure projects.
The partnerships reflect a broader shift in how the industry is financing data centers, power infrastructure and computing equipment. Rather than relying entirely on technology companies’ balance sheets, AI infrastructure projects are increasingly being supported by banks, private capital and institutional investors.
SpaceX’s proposed $40 billion financing could further demonstrate how Wall Street is becoming deeply involved in funding the physical infrastructure behind the AI industry.
Credits: Free Malaysia Today
SpaceX Shares Fall After Report
SpaceX shares fell around 1% in extended trading following the report, while Nvidia shares gained about 0.5%.
Neither SpaceX, Apollo nor Nvidia immediately responded to Reuters’ requests for comment. Pimco declined to comment.
The reported fundraising also comes months after SpaceX went public in June, with its IPO raising $85.7 billion after underwriters exercised an option to sell additional shares. The listing was described as a record-breaking public offering.
With SpaceX now seeking billions of dollars in debt financing for Nvidia chips, the company appears to be positioning itself at the intersection of space technology, AI computing and large-scale infrastructure investment.
If completed, the deal would provide a striking example of just how much capital is required to build the computing infrastructure underpinning the next phase of the AI boom.
