SpaceX is currently in discussions with banks and asset managers to raise $40 billion to finance the acquisition of Nvidia artificial intelligence chips, two individuals familiar with the matter. The company, led by Elon Musk, is engaging with asset manager PIMCO as part of these financing efforts.
The funding plan involves securing approximately $10 billion through bank loans and an additional $30 billion via investment-grade debt to cover the chip order. Apollo is anticipated to lead the transaction and assist in distributing the debt among a diverse group of investors. Both SpaceX and Nvidia have not provided comments on the situation, while Apollo and PIMCO have declined to respond. The sources requested anonymity as the deal remains confidential.
This substantial funding request highlights the significant capital requirements driven by the rapid growth of artificial intelligence, as technology firms compete to obtain advanced processors and expand the computing infrastructure essential for AI development. Industry estimates suggest that AI infrastructure will demand $1.5 trillion in external financing by 2028, despite increasing caution from lenders and investors regarding the sector’s expansion.
Following news of the financing talks, SpaceX’s shares dropped by 2 percent in early trading, whereas Nvidia’s stock saw a 0.5 percent increase. Musk, who took SpaceX public in June through a record-breaking $86 billion IPO, recently revealed that xAI’s Colossus 2 data center could potentially double the number of Nvidia chips in use by December. The company intends to rely exclusively on Nvidia hardware for its data center construction.
In August, Nvidia collaborated with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to establish financing platforms aimed at mobilizing over $500 billion for AI infrastructure projects, underscoring the scale of investment flowing into the AI ecosystem.
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