SpaceX Aims to Raise $40 Billion for Nvidia AI Chips

SpaceX is planning a massive $40 billion fundraising effort to purchase artificial intelligence chips from Nvidia. The financing will be split between $10 billion in bank loans and a $30 billion investment-grade bond sale, with Apollo Global Management leading the initiative. The deal is expected to close by 2027, as demand for AI infrastructure continues to surge across the tech industry.

Elon Musk’s SpaceX is rapidly expanding its AI capabilities, particularly through its xAI division. Musk recently announced plans to more than double the number of Nvidia chips in the Colossus 2 AI computing cluster by the end of the year. Currently, the cluster houses 110,000 Nvidia GB200 chips and 440,000 GB300 chips, with additional shipments scheduled for November and December.

Apollo Global Management has also been involved in Nvidia’s broader $500 billion financing partnership, which includes major players like Blackstone, BlackRock, Brookfield Asset Management, Goldman Sachs, and KKR. This partnership aims to support the development of AI infrastructure, reflecting the growing investment in data centers and computing power.

Following the report by the Financial Times, SpaceX shares initially fell 1.8% in after-hours trading, while Nvidia shares saw a 0.6% increase. The market reaction highlights the competitive landscape and the high costs associated with scaling AI technologies.