SpaceX is in talks with banks and investors to raise $40 billion in debt to purchase Nvidia chips, according to livemint.com. The fundraising aims to support the company’s AI and satellite operations, with plans to secure about $10 billion in bank loans and $30 billion in investment-grade debt. The financing discussions are in early stages and could conclude without a deal.
The financing effort is led by Apollo Global Management Inc., with Pacific Investment Management Co. among the investment managers reviewing the deal, livemint.com reported. The deal is expected to close in 2027, according to the Financial Times, which first reported the details citing unnamed sources. SpaceX’s shares fell 1.2% in US postmarket trading following the report, while Nvidia’s stock rose slightly.
This move highlights the growing demand for computing power among AI developers, with companies investing heavily in data centers equipped with advanced chips. The surge in demand has increased costs for chips, land, and power infrastructure globally. SpaceX’s plan to raise $40 billion for Nvidia chips reflects a broader trend of massive financing deals in the tech sector to support AI system development and deployment.
Apollo Global Management is leading the financing round, which is scheduled to close in 2027, according to livemint.com. The talks remain private and could end without a finalized agreement.