SpaceX Eyes $40 Billion to Buy Nvidia Chips Apollo Leads Financing

Space Exploration Technologies Corp. (NASDAQ:SPCX), commonly known as SpaceX, is reportedly planning to raise $40 billion in bank loans and investment-grade debt to purchase Nvidia Corp. (NASDAQ:NVDA) chips. According to a report by Reuters News, citing the Financial Times, the Elon Musk-led company aims to secure approximately $10 billion in bank loans and $30 billion in debt for this transaction. Apollo Global Management (NYSE:APO) is expected to lead the deal and assist in placing the debt with a broad range of investors, with Pimco among the lenders in discussions to provide financing.

The transaction is anticipated to close in 2027. SpaceX, Apollo, Nvidia, and Pimco did not immediately respond to requests for comment. Notably, Apollo is already involved in Nvidia’s broader financing efforts, having partnered with five other firms in August to mobilize over $500 billion for AI infrastructure.

Earlier this year, Musk announced that SpaceX would use Nvidia hardware exclusively for its data centers. He also mentioned that the company’s Colossus 2 data center could more than double its Nvidia chips by December. This move underscores SpaceX’s growing commitment to AI and advanced computing technologies.

On Tuesday, SpaceX’s stock closed 0.49% lower at $171.92 and fell 1.15% to $169.94 in extended trading, according to Benzinga Pro. Despite this decline, Benzinga Edge rankings indicate that SpaceX’s stock has a positive price trend across short, medium, and long-term horizons.