Full Breakdown
SpaceX Pursues $40 Billion Debt Financing to Purchase Nvidia AI Chips
By Drooid · · How we work
Core Financing Plan
SpaceX is arranging a $40 billion financing package to fund a large-scale purchase of Nvidia AI processors. The plan combines roughly $10 billion of bank loans with $30 billion of investment-grade bonds, according to the Financial Times. Asset manager Apollo Global Management will lead the deal and place the bonds, while bond-fund manager Pimco is among the lenders in talks. The financing is expected to close in 2027.
Background & Context
The effort reflects the capital intensity of the AI boom. Morgan Stanley projects that AI infrastructure will need about $1.5 trillion of external financing by 2028. SpaceX’s need for chips follows its June 2026 IPO, which priced shares at $135 and closed at $171.92 on October 6. The company’s AI-focused subsidiary xAI built the “Colossus 2” data centre, and Musk has said SpaceX will use Nvidia hardware exclusively.
Timeline
- June 11 2026 – SpaceX IPO pricing and market performance.
- October 6 2026 – Reuters reports the $40 billion financing plan; SpaceX shares fall ~1%, Nvidia shares rise 0.5%.
- October 7 2026 – Turkish outlet AA confirms the financing details.
- August 4 2026 (scheduled) – Management earnings call where Musk reiterated exclusive use of Nvidia chips.
- 2027 (expected) – Anticipated closing of the financing package.
Data & Statistics
- Total financing sought: $40 billion (- $10 billion loans, $30 billion bonds).
- SpaceX’s credit rating: BBB, allowing insurance and pension funds to buy its debt.
- Q2 2026 results: revenue $7.81 billion, capital spending $18.37 billion (AI-related $15.83 billion), net loss $541 million.
- Market reaction: SpaceX share price down ~1% after the report; Nvidia share price up ~0.5%.
- Nvidia’s market capitalization reached a record $5.65 trillion amid the financing surge.
Official Statements & Responses
Elon Musk told investors that SpaceX will build its data centres exclusively with Nvidia hardware and that the Colossus 2 facility could more than double its Nvidia chip count by December. Apollo, Pimco, and Nvidia declined to comment, and SpaceX did not immediately respond to media inquiries.
Criticism & Opposition
Nigel Green, chief executive of the deVere Group, warned that the financing creates a “dangerous loop” in which Nvidia both supplies the chips and helps finance the purchases, potentially inflating growth figures and exposing investors to heightened risk if chip values fall. He noted that Nvidia holds a sizable stake in SpaceX—valued at roughly $21 billion—raising concerns about independent demand for AI hardware.
Conflicting Reports & Gaps
While the Financial Times describes the deal as slated for completion in 2027, Bloomberg characterizes the talks as early-stage and possibly ending without a transaction. No definitive term sheet has been disclosed, leaving the ultimate size, timing, and lender composition uncertain.
What’s Next
The transaction is slated to close in 2027, but several milestones remain pending. Lock-up expirations are scheduled for October 9 and October 24, which will add hundreds of millions of new shares to the market and could affect equity pricing. Analysts and rating agencies are expected to evaluate the final bond terms once the financing package is formalized, and market participants will watch for updates on the deal’s progress.