SpaceX is planning to raise $40 billion in debt to finance the purchase of Nvidia AI chips. The funding structure involves $10 billion in bank loans and $30 billion in investment-grade bonds. Apollo Global Management is expected to lead the transaction, with Pimco participating in the discussions. The deal is not anticipated to close until 2027.
The proposed debt amount represents approximately 1.8% of the company's current market capitalization, which is estimated at $2.17 trillion. SpaceX shares have increased by nearly 15% over the past five days, closing at $171.92 on Tuesday. Despite this growth, the stock remains 24% below its 52-week peak of $225.64.
Elon Musk has stated that SpaceX intends to construct its data centers exclusively using Nvidia hardware. Additionally, he noted that the xAI Colossus 2 data center could double its Nvidia chip capacity by December. These moves align with broader industry trends, as Morgan Stanley projects that AI infrastructure will require $1.5 trillion in external financing by 2028.
