SpaceX (NASDAQ:SPCX) is seeking $40 billion in financing for purchases of Nvidia (NASDAQ:NVDA) artificial intelligence chips, with Apollo Global Management (NYSE:APO) expected to lead the transaction, according to the Financial Times, citing people familiar with the matter.
SpaceX shares fell 1.9% in pre-market trading following the report. The company is seeking approximately $10 billion in bank loans and $30 billion in investment-grade debt to finance the chip purchases, according to the newspaper.
Apollo is expected to lead the financing and assist with placing the debt with investors. Pimco is among a small group of lenders in discussions to participate, the Financial Times reported. The transaction is expected to close in 2027.
SpaceX, Apollo and Nvidia did not immediately respond to Reuters requests for comment, while Pimco declined to comment.
AI Infrastructure Financing Requirements Increase
The proposed financing comes as technology companies increase spending on processors, data centres and other infrastructure used for artificial intelligence.
Morgan Stanley estimates that AI infrastructure will require $1.5 trillion of external financing by 2028.
Elon Musk, who took SpaceX public in June through an $86 billion initial public offering, said last month that xAI’s Colossus 2 data centre could more than double the number of Nvidia chips it uses by December.
Musk also said the company plans to use Nvidia hardware exclusively for its data centres.
Nvidia, a major supplier of AI processors, partnered in August with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR on financing platforms intended to mobilise more than $500 billion for AI infrastructure projects.
Nvidia shares rose 0.5% in extended trading following the report, while SpaceX shares were down 1%.
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