SpaceX Seeks $40B Debt for Nvidia AI Chips Amid Stock Rally

SpaceX is seeking a $40 billion debt package to fund the purchase of Nvidia AI chips, according to a report by the Financial Times. The move comes amid a 15% stock rally over five days, lifting SpaceX’s market value to approximately $2.17 trillion. The $40 billion raise represents roughly 1.8% of SpaceX’s current market capitalization.

The debt financing would include $10 billion in bank loans and $30 billion in investment-grade bonds. Apollo Global Management is expected to lead the deal, with Pimco among the lenders in discussions. However, the transaction is not anticipated to close until 2027.

SpaceX’s stock closed at $171.92 on Tuesday, up $23.29 over five days, but still about 24% below its 52-week high of $225.64. Elon Musk recently stated that SpaceX plans to build its data centers exclusively on Nvidia hardware, with its xAI’s Colossus 2 data center set to run more than twice as many Nvidia chips by December.

Apollo Global Management has existing ties with Nvidia, having partnered with the chipmaker and other firms to allocate over $500 billion for AI projects. Morgan Stanley predicts that AI infrastructure will require $1.5 trillion in external financing by 2028, though lenders are becoming more cautious about backing such projects. SpaceX’s debt raise will test the credit market’s appetite for AI funding, with its share price potentially indicating whether equity holders accept the added leverage.