SpaceX is seeking approximately $40 billion in financing to purchase Nvidia artificial intelligence chips, with the Elon Musk-led company discussing the potential financing with banks and asset managers, according to a Reuters report. The proposed financing would consist of approximately $10 billion in bank loans and $30 billion of investment-grade debt.
Asset manager PIMCO is among the parties SpaceX has been discussing financing with, while Apollo is expected to lead the transaction and help distribute the debt to a broad group of investors.
The financing would support SpaceX’s purchase of Nvidia hardware as Musk expands the computing infrastructure supporting his companies’ artificial intelligence ambitions.
Musk recently said xAI’s Colossus 2 data center could more than double the number of Nvidia chips it uses by December. He also said the company plans to rely exclusively on Nvidia hardware when building its data centers.
The potential $40 billion financing illustrates the rapidly increasing capital requirements associated with building large-scale AI infrastructure as technology companies compete for advanced GPUs, power, data center capacity and networking equipment.
Morgan Stanley estimates the broader AI infrastructure market will require approximately $1.5 trillion of external financing by 2028, even as banks and other investors become more selective about underwriting large AI-related projects.
Nvidia has also been working with major financial institutions to expand the pool of capital available for AI infrastructure.
In August, Nvidia partnered with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR on financing platforms intended to mobilize more than $500 billion for AI infrastructure projects.
The financing effort also highlights the increasingly close relationship between AI computing demand and credit markets.
Advanced Nvidia GPUs represent one of the largest capital expenses for companies building frontier AI systems, while the scale of new clusters increasingly requires financing structures more commonly associated with major infrastructure projects.
