Key points
- SpaceX reportedly seeks $40 billion to buy Nvidia chips
- Apollo would lead the deal, with Pimco in talks
- The financing isn't expected to close until 2027
SpaceX (SPCX) is seeking $40 billion in financing to buy Nvidia (NVDA) AI chips, with Apollo Global Management (APO) expected to lead the deal, the Financial Times reported on October 6. The proposed package would include about $10 billion in bank loans and $30 billion in investment-grade debt.
Apollo would lead, with Pimco in talks
Apollo is expected to lead the deal and help place the debt with a broad range of investors, according to the FT. Bond fund Pimco is among a small group of lenders in talks to provide financing, and the transaction is expected to close in 2027.
Pimco declined to comment to Reuters. SpaceX, Apollo, and Nvidia didn't immediately respond to Reuters.
"Going forward, we have decided to build exclusively on Nvidia, because we think the Vera Rubin architecture is the best architecture," Elon Musk said on SpaceX's earnings call in August.
Apollo already works with Nvidia on AI funding. Nvidia partnered with Apollo, BlackRock, and other firms in August on financing platforms meant to raise more than $500 billion for AI infrastructure, Reuters reported.
SpaceX shares slipped after hours
As of 9:10 p.m. ET on October 6, SpaceX shares were down 1.6% at $169.09 in after-hours trading, from a $171.92 close. Nvidia was up 0.4% at $240.21. Apollo's last after-hours trade, at 8:04 p.m., was $116.97, up 0.9%.
SpaceX went public in June. In September, SpaceX said it had signed an AI hosting deal paying about $1.11 billion a month starting December 1. Super Micro Computer (SMCI) chief executive Charles Liang has said the company's data center work for SpaceXAI was moving "full speed ahead."
Morgan Stanley estimates AI infrastructure will need $1.5 trillion in outside financing by 2028, according to Reuters.
