SpaceX in Talks to Raise $40 Billion for Nvidia AI Chips
SpaceX is negotiating roughly $10 billion in bank loans and $30 billion in investment-grade debt, with Apollo expected to lead the deal.
SpaceX is in talks to raise about $40 billion in financing to buy Nvidia AI chips and expand its AI infrastructure, according to Bloomberg.
The structure under discussion consists of roughly $10 billion in bank loans and $30 billion in investment-grade debt. Apollo is expected to lead the deal and distribute the bonds to a broad set of investors, and PIMCO is reportedly considering participating.
The talks are at an early stage and the deal may not be finalized. SpaceX stock fell about 2% in early trading, while Nvidia stock rose 0.5%.
Earlier signals on AI infrastructure
Last month, Elon Musk said xAI's Colossus 2 data center could more than double the Nvidia chips it uses by December, and that he plans to use only Nvidia hardware for data center construction.
In August, Nvidia launched a financing platform with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to mobilize over $500 billion for AI infrastructure projects. Morgan Stanley estimated that $1.5 trillion in external funding will be needed for AI infrastructure by 2028.
Quick answers
How much is SpaceX trying to raise?
About $40 billion, according to Bloomberg, split into roughly $10 billion in bank loans and $30 billion in investment-grade debt.
What will SpaceX use the money for?
The funds are intended to buy Nvidia AI chips and expand SpaceX's AI infrastructure.
Is the SpaceX financing deal confirmed?
No. The talks are at an early stage and the deal may not be finalized.