Elon Musk's SpaceX is seeking $40bn in financing led by Apollo Global Management to purchase Nvidia chips, amplifying its bet on the chipmaker's advanced technology. The company aims to raise about $10bn in bank loans and $30bn in investment-grade debt, according to sources. Private capital group Apollo is expected to lead the deal and sell the debt to investors, with Bond group Pimco among lenders in talks.
The transaction is expected to close in 2027, underscoring vast sums raised for AI infrastructure investments. SpaceX's bonds, rated BBB (second-lowest investment-grade), traded at 85 cents on the dollar with yields similar to junk bonds due to mounting debt concerns. The deal would strengthen ties between SpaceX and Nvidia, with Musk vowing to build exclusively on Nvidia's Vera Rubin architecture, calling it the best AI platform.
Apollo has previously led major chip financing deals, including a $35bn transaction for Broadcom and a role in Nvidia's $500bn funding platform with Goldman Sachs, BlackRock, and KKR.
Source: Financial Times Companies · Summarized by HeadlinesBriefing