SpaceX Seeks $40 Billion to Fund Nvidia AI Chips

Space Exploration Technologies Corp. is negotiating to raise approximately $40 billion in financing to purchase artificial intelligence chips from Nvidia Inc. The deal, expected to close in 2027, would consist of $10 billion in bank loans and $30 billion in investment-grade debt. Apollo Global Management is expected to lead the transaction and distribute the debt to investors, with PIMCO also participating in discussions.

This financing follows a decision by CEO Elon Musk to build SpaceX data centers exclusively using Nvidia technology, specifically the Vera Rubin architecture. The move comes amid aggressive capital expenditure; in the second quarter of 2026, SpaceX spent $15.8 billion on AI infrastructure. While the company holds $100 billion in cash and marketable securities following its June IPO, its AI segment continues to operate at a loss. SpaceX intends to use operating income from its Starlink connectivity segment to service the resulting interest payments.

The scale of the borrowing has triggered volatility in credit markets. Credit default swaps on SpaceX debt reached a record 197.3 basis points, and the company's 2056 bonds dropped to approximately 84.70 cents on the dollar as bondholders expressed concern over the pace of debt supply. This follows a record $86 billion IPO in June and a subsequent $25 billion bond sale, bringing total issued and proposed borrowing since June to $65 billion. If completed, the company's total debt would rise to roughly $80 billion.