SpaceX is seeking $40 billion to buy Nvidia chips through a proposed package of about $10 billion in bank loans and $30 billion in investment-grade debt, Reuters reported on 6 October. The proposed transaction is expected to close in 2027.
Key points
- SpaceX is seeking about $10 billion in bank loans and $30 billion in investment-grade debt for its Nvidia chip order.
- Apollo Global Management is expected to lead the financing and help sell the debt to investors.
- Bond fund Pimco is among lenders in talks to finance the transaction, which is expected to close in 2027.
Apollo’s role in the $40 billion financing
Apollo Global Management is expected to lead the financing and help place the debt with a broad range of investors, Reuters reported. Pimco, a bond fund, is among the lenders in talks to finance the purchase.
The proposed bank borrowing and investment-grade debt would fund SpaceX’s chip order. Reuters reported the fundraising plan, rather than a completed loan or bond sale, citing a Financial Times account based on people familiar with the matter.
SpaceX, Apollo, Nvidia and Pimco did not immediately respond to Reuters’ requests for comment, the news agency reported.
Amazon’s proposed $8 billion Nvidia chip vehicle
Amazon is considering a different financing arrangement involving about $8 billion of Nvidia chips, Stocktwits reported on 2 October. Its account, also based on Financial Times reporting, said Amazon had held talks about moving chips into a special-purpose vehicle and leasing them back.
Amazon could offer outside investors up to a 10% equity stake in that vehicle, which would raise debt to finance the chips, according to Stocktwits. The chips are already being installed in more than a dozen US data centres, the report said.
Amazon had bought or leased the chips involved in its proposal. Under the arrangement being considered, the vehicle would hold the chips and Amazon would lease them back, placing part of the financing with outside investors.
SpaceX’s AI business and the 2027 timetable
SpaceX’s businesses include an AI segment built around Grok and products for consumer and enterprise customers, according to its MarketScreener company profile. The profile also lists space and connectivity businesses.
The financing under discussion is for a Nvidia chip order. Apollo is expected to help sell the debt to investors, while Pimco is among lenders in talks about the transaction.
SpaceX’s proposed transaction is expected to close in 2027, Reuters reported.
