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SpaceX seeks $40 billion to buy Nvidia chips for Elon Musk’s AI expansion

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SpaceX seeks $40 billion to buy Nvidia chips for Elon Musk’s AI expansion

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SpaceX seeks $40 billion to buy Nvidia chips for Elon Musk’s AI expansion

Elon Musk’s SpaceX is in talks to raise $40 billion in debt to buy Nvidia chips, with $10 billion in bank loans and $30 billion in investment-grade debt reportedly planned.

Elon Musk’s SpaceX is in talks with banks and investors to raise $40 billion of debt to buy chips from Nvidia Corp., people familiar with the matter said, underscoring the insatiable demand among AI developers for more computing power. Pacific Investment Management Co. is one of the investment managers looking at the deal, said the people, who spoke on condition of anonymity as the talks are private. SpaceX’s fundraising discussions are in an early stage and could end without a deal being completed, they said. Musk’s AI, satellite and rocket conglomerate is seeking to raise about $10 billion in bank loans and $30 billion in investment-grade debt to pay for the chips, the Financial Times reported earlier, citing unnamed sources familiar with the matter. Apollo Global Management Inc. is leading the financing, in a deal that is expected to close in 2027, the newspaper said.

Tech companies and AI model developers are investing and borrowing hundreds of billions of dollars to build and lease giant data centers full of chips to power AI systems. The worldwide expansion of computing capacity has sent the cost of everything from land to chips and power-generation equipment soaring, touching off a series of massive financing deals.


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