SpaceX Seeks US$40 Billion to Buy Nvidia Chips for AI Expansion
SingTao · 3 SOURCESabout 3 hours ago2 MIN
Summary
SpaceX, the space exploration company owned by billionaire Elon Musk, is reportedly seeking to raise US$40 billion to purchase Nvidia chips and expand its artificial intelligence infrastructure, according to sources cited by the Financial Times . The company is in discussions with banks and investors for a financing package that includes approximately US$10 billion in bank loans and US$30 billion in investment-grade corporate bonds . Asset management firm Apollo Global Management is expected to lead the transaction and assist SpaceX in marketing the bonds to investors . PIMCO has emerged as one of the few potential investors participating in the bond negotiations . The deal is anticipated to be completed next year . SpaceX's common shares (ticker: SPCX) closed at US$171.92 on Tuesday, up 0.49 percent, before retreating 1.15 percent in after-hours trading . Nvidia (ticker: NVDA) ended at US$139.24 on Tuesday, gaining 0.14 percent, with shares rising 0.26 percent after the bell .
Key Points
- SpaceX is seeking US$40 billion in total financing, comprising US$10 billion in bank loans and US$30 billion in investment-grade bonds
- Apollo Global Management will lead the bond issuance and assist SpaceX in marketing the debt securities to institutional investors
- PIMCO is among the limited number of investors in discussions to participate in the bond offering
- The funds will be used to purchase Nvidia chips and other AI infrastructure, with the deal expected to close in 2027
- The financing reflects SpaceX's need to invest heavily in infrastructure to support its "Superintelligence" (SI) development ambitions
Why It Matters
This massive capital raise signals SpaceX's serious pivot toward AI infrastructure development beyond its core aerospace business . The deal would represent one of the largest corporate bond offerings in recent history and underscores the enormous capital requirements of building competitive AI capabilities, with Nvidia's advanced chips serving as the foundational building blocks for next-generation AI systems .
This massive capital raise signals SpaceX's serious pivot toward AI infrastructure development beyond its core aerospace business . The deal would represent one of the largest corporate bond offerings in recent history and underscores the enormous capital requirements of building competitive AI capabilities, with Nvidia's advanced chips serving as the foundational building blocks for next-generation AI systems .