SpaceX Targets $40 Billion Debt Financing for Nvidia AI Hardware Acquisition
SpaceX is reportedly preparing to raise $40 billion through a combination of bank loans and investment-grade debt to acquire Nvidia AI processors, according to reports. The proposed financing structure could combine $10 billion in bank loans with $30 billion in investment-grade debt, with a potential closing window set for 2027. Discussions remain in early stages, and no transactions are finalized.
Debt Structure and Lenders Behind the Proposed Financing
Apollo Global Management is expected to lead the organization of the $40 billion debt package, according to tomshardware.com. Bond manager Pimco is also among a select group of lenders discussing participation in the deal. The proposed transaction follows prior financial arrangements between Apollo and Elon Musk’s ventures. In August, Nvidia partnered with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to build financing platforms aimed at attracting over $500 billion in third-party capital for artificial intelligence infrastructure. Apollo previously arranged a $7 billion financing package for xAI to purchase Nvidia hardware for the Colossus 2 data center in Memphis.
xAI seeks 40 billion dollars for Nvidia hardware
If the transaction materializes, xAI would secure $40 billion worth of Nvidia Rubin-generation hardware, including AI accelerators, tomshardware.com reported. Assuming systems such as the Vera Rubin NVL72 are priced near $8 million per unit, the budget would fund roughly 5,000 machines containing approximately 360,000 Nvidia Rubin AI accelerators. This expansion follows substantial existing deployments. Elon Musk stated that xAI’s Colossus 2 cluster currently operates 110,000 Nvidia GB200 accelerators alongside 440,000 GB300 devices.
When is the potential financing deal expected to close?
When is the potential financing deal expected to close?
According to tomshardware.com, the transaction is currently expected to close sometime in 2027, though discussions remain at an early stage.
Which financial institutions are involved in the debt discussions?
Apollo Global Management is expected to take the lead in arranging the financing, with bond manager Pimco also participating in discussions, tomshardware.com reported.
What specific hardware would the funds purchase?
The proposed financing would target Nvidia Rubin-generation hardware and AI accelerators, potentially funding around 5,000 machines containing roughly 360,000 accelerators.