SpaceX to raise $40 billion for Nvidia chips as demand for AI computing surges: Report

SpaceX is planning to raise about $40 billion to finance the purchase of Nvidia AI chips, a move that underscores the enormous cost of building computing capacity as demand for artificial intelligence infrastructure surges.

The Elon Musk-led company is looking to raise about $10 billion through bank loans and another $30 billion through investment-grade debt, the Financial Times reported on Tuesday, citing people familiar with the matter.

Asset manager Apollo Global Management is expected to lead the financing and help place the debt with a broad range of investors. Bond fund Pimco is among a small group of lenders in talks to provide financing, according to the report. The transaction is expected to close in 2027.

The proposed financing comes as technology companies race to secure advanced processors and expand data centre capacity needed to develop and run AI systems.

SpaceX and Nvidia chips

Musk said last month that xAI’s Colossus 2 data centre could more than double the number of Nvidia chips it uses by December.

SpaceX plans to use Nvidia hardware exclusively to build its data centres, Musk has said. The reported financing would therefore help the company secure processors as it expands its AI computing infrastructure.

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The scale of the proposed fundraising also highlights the broader financing needs of the AI industry. Morgan Stanley estimates that AI infrastructure will require $1.5 trillion in external financing by 2028, even as lenders and investors become more cautious about funding the sector’s rapid expansion.

Growing AI infrastructure financing

Nvidia in August partnered with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR on financing platforms intended to mobilise more than $500 billion for AI infrastructure projects.

The capital is needed not only for chips but also for data centres, power, cooling and networking infrastructure required to operate increasingly powerful AI systems.

SpaceX, Apollo and Nvidia did not immediately respond to Reuters requests for comment. Pimco declined to comment.

SpaceX shares fell about 1 per cent in extended trading after the report, while Nvidia shares rose 0.5 per cent.

The reported fundraising comes months after SpaceX raised $8.57 billion in its June IPO.