SpaceX is in early-stage talks to raise $40 billion in a financing deal led by Apollo Global Management to purchase advanced Nvidia AI chips. The proposed transaction, structured as $10 billion in bank loans and $30 billion in investment-grade debt, highlights the massive capital requirements of the AI boom. While Elon Musk commits to building exclusively on Nvidia's architecture, some investors remain cautious due to SpaceX's limited financial disclosures and mounting debt.
SpaceX's proposed $40 billion financing deal
- ▪SpaceX plans to structure its $40 billion financing with approximately $10 billion in bank loans and $30 billion in investment-grade debt
- ▪SpaceX's fundraising discussions to raise $40 billion to buy Nvidia chips are in an early stage and could end without a deal being completed
Musk's commitment to Nvidia
- ▪Elon Musk stated during a SpaceX earnings call in August 2026 that SpaceX decided to build exclusively on Nvidia's Vera Rubin architecture
- ▪Elon Musk stated last month that the Colossus 2 data center of xAI could more than double the number of Nvidia chips it uses by December 2026
- ▪Elon Musk vowed to double down on Nvidia's technology for his artificial intelligence initiatives at xAI
SpaceX's bond market performance
- ▪SpaceX's bonds maturing in 2056 are trading at about 85 cents on the dollar, yielding about 2.27 percentage points above US Treasuries
- ▪SpaceX sold $25 billion in high-grade bonds less than two weeks after its $86 billion initial public offering in June 2026
Nvidia's chip financing platform
- ▪Nvidia's $500 billion funding platform aims to create third-party capital pools to finance chip acquisitions, with Nvidia potentially backstopping up to 25 percent of the Nvidia chip value
- ▪Nvidia announced in August 2026 that it was working with Wall Street firms, including Apollo, BlackRock, and Blackstone, on a $500 billion funding platform
Apollo's corporate lending
- ▪Apollo Global Management has led multibillion-dollar financing transactions for high-grade companies such as Intel and Bayer
- ▪Apollo Global Management led a $35 billion chip financing deal in June 2026 for processors made by Nvidia rival Broadcom
Outlook on artificial intelligence funding
- ▪Morgan Stanley estimates that artificial intelligence infrastructure will require $1.5 trillion in external financing by 2028
- ▪Lenders and investors are growing more cautious about funding the expansion of the artificial intelligence industry
Debatable claims
- ▪SpaceX's investment-grade credit rating is unjustified given its mounting debt
- ▪SpaceX's exclusive reliance on Nvidia's architecture is a strategic mistake
- ▪SpaceX's $40 billion debt plan poses an unacceptable risk to its financial stability
- ▪SpaceX should provide detailed financial disclosures to secure its massive debt offerings
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