SpaceX in Talks to Borrow $40 Billion for NVIDIA AI Chips
SpaceX is reportedly in negotiations to secure a massive loan of $40 billion to purchase Artificial Intelligence (AI) chips from NVIDIA, according to The Financial Times and Bloomberg. While both sources cite anonymous informants, neither company has officially confirmed the plans.
Key Details:
- Loan Package: The deal is said to combine approximately $10 billion in bank loans with $30 billion in investment-grade debt.
- Lead Lender: Apollo Global Management is anticipated to lead the financing, with Pimco, a bond fund, among potential lenders.
- Timing: According to FT, the deal is expected to be finalized in 2027, while Bloomberg describes the talks as being in an early stage.
- Purpose: The AI chips would support SpaceX's data centers and enhance its ability to rent hardware to other companies, as it currently does with Google.
Recent Developments:
- In August, Elon Musk announced SpaceX would build its own AI data centers using exclusively NVIDIA hardware.
- Last month, he revealed plans to more than double the Nvidia chip count at its Colossus 2 site by December.
- NVIDIA has been assisting customers in financing their AI products through partnerships with financial giants like Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR.
Market Reaction: SpaceX shares dipped about 1% in after-hours trading on Tuesday, while NVIDIA shares rose approximately 0.5%.