By Rajwa Quasim
Elon Musk’s SpaceX is seeking to raise about $40 billion to finance a major purchase of Nvidia’s artificial intelligence chips. The announcement resulted in decline in stock prices on Tuesday.
SpaceX is reportedly working on a financing package led by Apollo Global Management that would include about $10 billion in bank loans and $30 billion in investment grade debt. The financing is expected to help the company fund a large order of Nvidia chips. The transaction is expected to close in 2027.
As the report of potential deal became public, SpaceX shares dropped in after-hours and premarket trading. On Tuesday, SpaceX closed 0.49% lower at $171.92 and fell 1.15% at $169.94 in extended trading. The decline came even though SpaceX shares had been trading above their $135 initial public offering price following the company’s public debut in June.
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Apollo is expected to lead the financing. According to media reports, bond fund Pimco is reportedly among a small group of lenders discussing participation in the deal.
SpaceX received an investment-grade credit rating shortly after its $86 billion IPO in June and raised $25 billion through high grade bonds less than two weeks later. However, the bonds came under pressure in the days that followed as investors grew concerned about the company’s rising debt and substantial capital spending.
Due to AI boom, technology companies are spending heavily on advanced processors, data centers, electricity and other infrastructure needed to train and operate powerful AI systems. Morgan Stanley estimates that AI infrastructure could require at least $1.5 trillion in external financing by 2028. Musk had previously indicated that the company is building an AI computing business and Nvidia will play a central role in its data centers. The company’s Colossus 2 data center is likely to double its purchase of Nvidia chips by Dec.
READ: SpaceX, Northrop Grumman complete Golden Dome tests (August 12, 2026)
Meanwhile, Nvidia has been working with major financial firms, including Apollo, BlackRock, Blackstone, Goldman Sachs and KKR on financing platforms designed to mobilize more than $500 for AI infrastructure.
Earlier this week, Elon Musk reclaimed his position as the world’s richest person after his fortune crossed the $1 trillion mark, driven by sharp gains in SpaceX and Tesla shares. SpaceX shares gained more than 7% on Monday, but stock dropped very next day. The company performed better-than-expected third-quarter deliveries from Tesla last week and renewed investor optimism surrounding Musk’s space and artificial intelligence businesses. SpaceX also recently launched its Starship rocket into orbit successfully.