SpaceX seeks $40 billion in loans and bonds to buy Nvidia chips
In short
SpaceX is seeking to raise $40 billion, about 53.5 trillion won, through bank loans and corporate bond issuance to fund purchases of Nvidia's advanced chips, according to Financial Times reporting cited by Yonhap, Newsis and Seoul Economic Daily. Yonhap and Seoul Economic Daily said the plan comprises $10 billion in bank loans and $30 billion in bonds, led by Apollo Global Management, with Pimco reported among a small group of creditors. The funding is expected to be completed in 2027.
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SpaceX is seeking to raise $40 billion, about 53.5 trillion won, through bank loans and corporate bond issuance to fund the purchase of Nvidia's advanced chips, according to Financial Times reporting cited by Yonhap, Newsis and Seoul Economic Daily. The three Korean outlets published their reports on the morning of October 7. [ 1 , 2 , 3 ]
The financing is led by private equity manager Apollo Global Management, with $10 billion to come from bank loans and $30 billion from bonds, Yonhap and Seoul Economic Daily reported, both citing the FT's unnamed sources. Apollo is expected to sell the bonds to investors, and Pimco, described by Yonhap as the world's largest bond manager, is reported to be among a small group of creditors. The fundraising is expected to be completed in 2027. [ 1 , 3 ]
Yonhap reported that SpaceX holds a BBB credit rating, the second-lowest investment grade, which would allow insurers and pension funds to buy the bonds. Both Yonhap and Seoul Economic Daily noted that SpaceX issued $25 billion of bonds in June, shortly after its initial public offering. Amid concern over rising debt and heavy capital spending, the price of those bonds has fallen, with the spread over US Treasuries widening to about 2.27 percentage points — a level the outlets compared with junk bonds. [ 1 , 3 ]
Musk said at an earnings briefing in August that SpaceX had decided to adopt Nvidia's Vera Rubin AI platform in full. According to Yonhap and Seoul Economic Daily, he called Vera Rubin the best architecture and “the best AI computer”, and said he valued close cooperation and partnership with Nvidia. [ 1 , 3 ]
Why it matters
The reported $40 billion debt raise would tie a large share of SpaceX's financing to AI hardware purchases, making the company's credit profile directly relevant to Nvidia's AI platform sales. Documents note that SpaceX's existing bonds already trade at spreads comparable to junk debt, so investors are watching how the company finances heavy capital spending.
Key facts
- SpaceX is seeking to raise $40 billion, about 53.5 trillion won, to buy Nvidia's advanced chips. [ 1 , 2 , 3 ]
- The plan consists of $10 billion in bank loans and $30 billion in corporate bond issuance. [ 1 , 3 ]
- Private equity manager Apollo Global Management is leading the fundraising and is expected to sell the bonds to investors. [ 1 , 3 ]
- Yonhap reported that Pimco, described as the world's largest bond manager, is among a small group of creditors. [ 1 , 3 ]
- SpaceX holds a BBB credit rating, the second-lowest investment grade, which allows insurers and pension funds to buy the bonds. [ 1 , 3 ]
- SpaceX issued $25 billion in bonds in June, shortly after its initial public offering, and the spread on those bonds over US Treasuries has widened to about 2.27 percentage points. [ 1 , 3 ]
- Musk said in an August earnings briefing that SpaceX decided to adopt Nvidia's Vera Rubin AI platform in full. [ 1 , 3 ]
- The fundraising is expected to be completed in 2027. [ 1 , 3 ]
Confirmed by several sources
- SpaceX is seeking about $40 billion to fund purchases of Nvidia chips. [ 1 , 2 , 3 ]
- The financing is split into $10 billion of bank loans and $30 billion of bonds. [ 1 , 3 ]
- Apollo Global Management is leading the financing and Pimco is reported among a small group of creditors. [ 1 , 3 ]
- SpaceX's credit rating is BBB, the second-lowest investment grade. [ 1 , 3 ]
- SpaceX issued $25 billion of bonds in June after its IPO, and the spread on those bonds over US Treasuries is about 2.27 percentage points, similar to junk bonds. [ 1 , 3 ]
- Musk said SpaceX would adopt Nvidia's Vera Rubin AI platform, calling it the best architecture and “the best AI computer”. [ 1 , 3 ]
- The fundraising is expected to be completed in 2027. [ 1 , 3 ]
Still unclear
- Whether SpaceX, Nvidia, Apollo Global Management or Pimco have confirmed or commented on the financing plan. The reports rely on unnamed sources cited by the Financial Times; the documents contain no statements from any of the companies.
- Details of the chip purchase itself, beyond the reference to Nvidia's Vera Rubin platform. The documents describe the purpose of the fundraising but give no contract terms, volumes or delivery dates.
- Newsis's own reporting on the plan. Newsis's feed summary carries the headline, but the article text we could read covers an unrelated rocket launch, so the outlet contributes only the headline figure.
What local media are saying
Timeline, local time
- Yonhap reports that SpaceX plans to raise $40 billion via loans and bonds to buy Nvidia chips, citing Financial Times sources. [ 1 ]
- Newsis publishes a headline report on the same $40 billion financing plan. [ 2 ]
- Seoul Economic Daily reports the financing details, including Apollo's lead role and the $10 billion loan and $30 billion bond split. [ 3 ]