SpaceX Eyes USD40B Debt Deal to Buy Nvidia AI Chips
The US aerospace company is looking to secure roughly $10 billion in bank loans and $30 billion in investment-grade debt to pay for the order. Apollo, a private capital group, is expected to lead the transaction and help place the debt with a wide pool of investors. Pimco, the bond group, has joined talks with a small group of lenders to fund the deal, which the companies plan to close in 2027.
The effort highlights the enormous sums technology firms are raising to build data centers, chips and other infrastructure behind artificial intelligence (AI).
SpaceX's BBB credit rating, the second-lowest investment-grade tier, opens the door for insurers and pension funds to buy its debt.
Apollo and Pimco declined to comment. SpaceX and Nvidia did not immediately respond to media inquiries.
The deal deepens the relationship between the two companies. Elon Musk, SpaceX's chief executive, has pledged to double down on Nvidia technology for his AI initiatives. During SpaceX's August earnings call, Musk said the company chose to build exclusively on Nvidia because it regards the Vera Rubin architecture as the best available.
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