SpaceX Seeks $40 Billion for Nvidia Chips in Apollo-Led Financing, FT Says

SpaceX is seeking about $40 billion in financing led by Apollo to buy Nvidia chips, the Financial Times reported on October 6. The proposed borrowing would put banks and debt investors behind a major hardware purchase for the company. This is financing SpaceX is seeking, not money it has already secured.

Two parts to the proposed borrowing

The proposed package would consist of about $10 billion in bank loans and another $30 billion in investment-grade debt. CTech, citing the Financial Times’s reporting from people familiar with the matter, described the financing as largely intended to purchase Nvidia AI chips. Those figures put the larger debt component at three times the amount sought through bank loans.

Borrowing, rather than a sale of new shares, is central to this package. The reported split assigns different parts of the funding to bank loans and investment-grade debt, with the latter accounting for three-quarters of the total sought.

2027Reported closing year

The transaction is expected to close in 2027.

Apollo’s role, Pimco’s talks

Apollo Global Management is expected to lead the transaction and help place the debt with a broad range of investors. Bond fund Pimco is reportedly among a small group of lenders in talks to provide financing.

Pimco declined to comment. SpaceX, Apollo and Nvidia did not immediately respond to Reuters requests for comment, according to CTech. The prospective lenders’ discussions and Apollo’s expected arranging role are the current steps toward assembling the financing.

The intended chip purchase aligns with SpaceX’s stated hardware strategy. The company has said it plans to use Nvidia hardware exclusively to build its data centers, making Nvidia its planned sole hardware supplier for those facilities rather than one of several.