Grab EXTRA 10% OFF all Tangem products. Till Oct 25SpaceX plans $40B Apollo-led raise for Nvidia AI chips
6.6 Investments SpaceX aims to raise $40B, led by Apollo, to buy Nvidia chips and expand AI infrastructure. The deal, including $10B in loans and $30B in bonds, is set to close in 2027.
SpaceX is planning to raise $40 billion, with Apollo Global Management leading the effort, to acquire Nvidia chips and expand its AI infrastructure. The financing package is expected to consist of $10 billion in bank loans and $30 billion in investment-grade bonds, with Pimco among the potential lenders. The transaction is anticipated to close in 2027. This significant capital raise underscores the immense funding required for AI development, as companies invest heavily in advanced processors and data centers. SpaceX, which reportedly holds substantial cash reserves, is issuing debt to support long-term AI projects. Analysts project a sharp increase in AI-related revenue by 2027. However, there are risks if AI demand or utilization grows slower than expected, which could result in high interest and depreciation costs before revenue ramps up. The scale of this debt issuance highlights the growing need for capital in the AI sector, with SpaceX's strong credit rating attracting a wide range of institutional investors.
