SpaceX Seeks $40 Billion Apollo-Led Financing to Buy Nvidia Chips, Reports Say

SpaceX is looking to raise roughly $40 billion to buy Nvidia artificial-intelligence chips, the Financial Times reported on Tuesday, citing people familiar with the matter, according to Reuters.

The package under discussion would combine about $10 billion in bank loans with about $30 billion in investment-grade debt, according to the report. Apollo Global Management is expected to lead the financing and help place the debt with a broad group of investors, with Pimco among the firms involved in talks, Reuters reported.

Early talks, large chip ambitions

Bloomberg, via Moneyweb, reported that the discussions are at an early stage and could still end without an agreement. Bloomberg also reported that Pacific Investment Management Co. is among the managers examining the transaction.

The reported fundraising is tied to expanding computing capacity. Bloomberg reported that Elon Musk said last month that the Colossus 2 computing cluster built by his xAI business could more than double its Nvidia chip count by the end of the year, and described a current installation in the hundreds of thousands of Nvidia processors.

Apollo has been part of earlier financings connected to Musk’s AI efforts, and Nvidia in August joined Apollo and other large investors in a partnership aimed at mobilizing $500 billion for AI infrastructure, according to Bloomberg.

Market reaction

SpaceX shares fell 2.1% in Wednesday trading coverage after the Financial Times report, according to Reuters, which also noted lower premarket moves in some other chip stocks as investors waited for Federal Reserve meeting minutes later in the day.

SpaceX, Apollo, Nvidia and Pimco did not immediately respond to requests for comment, according to Reuters. Bloomberg likewise reported no immediate comment from SpaceX, Apollo and Nvidia.

Reporting based on coverage by Reuters and Bloomberg.