CONNECT WITH US
Tech

Tech

SpaceX secures $40 billion lease to expand AI computing capacity with Nvidia chips

CNBCTV18 - Tech logo

Published on

Add as a preferred source on Google
SpaceX secures $40 billion lease to expand AI computing capacity with Nvidia chips

SpaceX has secured a commitment for an approximately $40 billion master finance lease for graphics processing units (GPUs) and related equipment from an entity managed by Apollo Global Management, as the company looks to expand its computing infrastructure.

The agreement, announced on Monday, is intended to finance the deployment of NVIDIA’s next-generation Vera Rubin chips for SpaceX’s terrestrial computing infrastructure. The transaction remains subject to specified closing conditions and is expected to close before the end of 2026.

The company said the lease would diversify its funding sources and help finance the expansion of computing capacity to support its artificial intelligence (AI) and cloud services businesses.

The financing is led by Apollo and Goldman Sachs, which acted as the sole structuring agent. Funds and accounts managed by BlackRock and Goldman Sachs Asset Management, along with capital accounts advised by KKR, have also made anchor commitments to the transaction.

Lease schedules are expected to begin when the GPUs and related equipment are delivered in the first half of 2027.

Further details of the agreement are expected to be available in SpaceX’s Current Report on Form 8-K filed with the US Securities and Exchange Commission.

Commenting on the transaction, SpaceX’s chief financial officer Bret Johnsen said, “SpaceX aims to deploy the largest compute infrastructure in the world. As demand for compute continues to accelerate, we’re seeing less than one year payback periods on our SI infrastructure investments.”

The CFO added that the lease would diversify the company’s funding sources and address a portion of the capital required for its expansion plans.


Source link
Related Topics:Tech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.