SpaceX seeks $40bn Apollo-led financing to buy Nvidia chips, reports say
In short
SpaceX is seeking about $40bn in financing, led by Apollo Global Management, to buy Nvidia chips, according to reports citing people familiar with the matter. The company plans roughly $10bn in bank loans and $30bn in investment-grade bonds, with the deal expected to complete in 2027. None of the companies involved has confirmed the plan; Apollo and Pimco declined to comment and SpaceX and Nvidia did not immediately respond.
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SpaceX is seeking to raise about $40bn in financing to buy Nvidia chips, in a transaction expected to be led by private capital group Apollo Global Management, according to reports citing people familiar with the matter. The company plans to raise roughly $10bn through bank loans and $30bn through investment-grade bonds, the reports said, with the deal expected to be completed in 2027. IT Home attributed the details to the Financial Times; the other accounts cited media reports and unidentified people familiar with the matter. [ 1 , 2 , 3 , 4 , 5 ]
Apollo is expected to lead the transaction and help sell the bonds to a broad group of investors, the reports said. Pimco is among a small number of lenders in talks to provide financing, according to IT Home and cnBeta. Apollo and Pimco declined to comment, while SpaceX and Nvidia did not immediately respond to requests for comment, cnBeta reported. [ 2 , 5 ]
SpaceX obtained an investment-grade credit rating, BBB, shortly after completing an $86bn initial public offering in June, and within about two weeks issued $25bn in high-grade bonds, according to IT Home and cnBeta. Those bonds sold off in the following days amid investor concern about the company's rising debt and large capital spending, the reports said. According to MarketAxess data cited in both accounts, SpaceX's bonds maturing in 2056 trade at about 85 cents on the dollar, with a yield about 2.27 percentage points above US Treasuries — a level close to that of junk bonds. Because of the BBB rating, insurers and pension funds are able to buy the debt, the reports noted. [ 2 , 5 ]
Musk said on SpaceX's August earnings call that the company had decided to build entirely on Nvidia technology. “We have decided to build entirely on Nvidia because we think the Vera Rubin architecture is the best architecture,” he was quoted as saying, adding that the company valued close cooperation with Nvidia at several levels. The reports framed a completed financing as a further deepening of SpaceX's ties with Nvidia, and as a gain for Nvidia as other chipmakers try to challenge its position in advanced semiconductors. [ 2 , 5 ]
Apollo has made lending to high-grade companies a pillar of its $800bn credit business and has led multi-billion-dollar financing deals for companies including Intel and Bayer, with its life insurance and annuity affiliate Athene typically taking a large part of such issuance, according to IT Home and cnBeta. In June, Apollo led a $35bn chip financing transaction to buy processors from Nvidia rival Broadcom, described at the time as the largest private credit deal. In August, Nvidia said it was working with major Wall Street institutions on a $500bn financing platform and had signed memorandums of understanding with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR, with Nvidia potentially backstopping up to 25% of the chip value. [ 2 , 5 ]
The two fuller accounts also said investors previously approached by SpaceX about financing the chip purchase reported receiving only a brief two-page project memo with space imagery and an arrow indicating the company planned to build a data centre “somewhere in the universe”. One person was quoted asking how such material could be taken to an internal investment committee. Musk's limited financial disclosure has in the past made some investors reluctant to buy SpaceX debt, the reports said. [ 2 , 5 ]
Why it matters
The scale of the proposed deal illustrates how much money is being raised for the data centres, chips and other infrastructure behind artificial intelligence, as the documents describe it. For Nvidia, a completed financing would deepen an existing relationship with SpaceX at a time when other chipmakers are trying to challenge its position in advanced semiconductors. The reports also flag investor concern about SpaceX's rising debt and heavy capital spending, which has weighed on its existing bonds.
Key facts
- SpaceX plans to raise about $40bn to purchase Nvidia chips, according to reports citing people familiar with the matter. [ 1 , 2 , 3 , 4 , 5 ]
- The financing is expected to consist of roughly $10bn in bank loans and $30bn in investment-grade bonds. [ 2 , 3 , 5 ]
- Apollo Global Management is expected to lead the transaction and help sell the bonds to a broad group of investors. [ 1 , 2 , 3 , 4 , 5 ]
- Pimco is among a small number of lenders in talks to participate, according to the reports. [ 2 , 5 ]
- The transaction is expected to be completed in 2027. [ 2 , 3 , 5 ]
- Apollo and Pimco declined to comment, while SpaceX and Nvidia did not immediately respond to requests for comment. [ 5 ]
- SpaceX obtained an investment-grade credit rating of BBB after its June IPO and subsequently issued $25bn in high-grade bonds. [ 2 , 5 ]
- Musk said in August that SpaceX had decided to build entirely on Nvidia because it considered the Vera Rubin architecture the best. [ 2 , 5 ]
Confirmed by several sources
- SpaceX is seeking about $40bn to buy Nvidia chips, according to reports citing people familiar with the matter. [ 1 , 2 , 3 , 4 , 5 ]
- Apollo Global Management is expected to lead the financing and help sell the bonds to investors. [ 1 , 2 , 3 , 4 , 5 ]
- The financing is expected to comprise about $10bn in bank loans and $30bn in investment-grade bonds. [ 2 , 3 , 5 ]
- The deal is expected to be completed in 2027. [ 2 , 3 , 5 ]
- Pimco is among the lenders in talks to participate. [ 2 , 5 ]
- The proceeds are intended for Nvidia chips. [ 2 , 3 , 4 , 5 ]
Still unclear
- Whether SpaceX, Nvidia or Apollo confirm the financing plan The reports cite unidentified people familiar with the matter; Apollo and Pimco declined to comment and SpaceX and Nvidia did not immediately respond, so the plan is not confirmed by any party.
- The final size and terms of the financing All figures come from unnamed sources cited in media reports; no company or filing has stated the amounts.
- Which lenders and investors beyond Pimco will take part Only Pimco is named as being in talks, and only by two outlets citing people familiar with the matter.
What local media are saying
Timeline, local time
- SpaceX completed an $86bn IPO, obtained an investment-grade credit rating shortly afterwards and within about two weeks issued $25bn in high-grade bonds. [ 2 , 5 ]
- Apollo led a $35bn chip financing transaction to buy Broadcom processors, described as the largest private credit deal at the time. [ 2 , 5 ]
- On SpaceX's earnings call, Musk said the company had decided to build entirely on Nvidia, calling its Vera Rubin architecture the best. Nvidia also announced a $500bn financing platform with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR. [ 2 , 5 ]
- CLS reported that an Apollo-led financing would help SpaceX purchase Nvidia chips. [ 1 ]
- IT Home reported, citing the Financial Times, that SpaceX plans to raise $40bn through about $10bn in bank loans and $30bn in investment-grade bonds, with Apollo expected to lead and Pimco in talks, for completion in 2027. [ 2 ]
- 36Kr reported the planned $40bn raise, citing media reports. [ 3 ]
- Jiemian reported the Apollo-led plan and the $10bn loan and $30bn bond split. [ 4 ]
- cnBeta reported the plan and noted that Apollo and Pimco declined to comment while SpaceX and Nvidia did not immediately respond. [ 5 ]
- The transaction is expected to be completed. [ 2 , 3 , 5 ]