Elon Musk's SpaceX is in talks with banks and investors to raise $40 billion of debt to buy chips from Nvidia, a financing that would rank among the biggest-ever debt deals for the artificial-intelligence buildout, the Financial Times reported on Tuesday.
According to people familiar with the matter cited by the FT and Bloomberg, the rocket company is seeking about $10 billion in bank loans and $30 billion in investment-grade debt. Apollo Global Management is expected to lead the financing, with bond fund Pimco among the lenders in talks to participate. The sources said the discussions are at an early stage and could end without a deal being completed, with any transaction expected to close in 2027.
Nvidia, SpaceX and Apollo did not immediately respond to requests for comment, while Pimco declined to comment.
The proposed fundraising underlines the insatiable demand for computing power among AI developers. Tech companies and AI labs are investing and borrowing hundreds of billions of dollars to build and lease giant data centres packed with chips to power AI systems — a worldwide expansion of computing capacity that has sent the cost of land, chips and power-generation equipment soaring.
Musk's AI infrastructure push
Just last month, Musk said Colossus 2, an AI computing cluster built by his xAI business near Memphis, could more than double its current Nvidia chip count by the end of the year. Colossus 2 now has 110,000 Nvidia GB200 chips and 440,000 GB300 chips, Musk said in a post on X, with another 220,000 GB300s due to be operational next week and further tranches expected in November and possibly late December.
Musk, who took SpaceX public in June in a record $86 billion IPO, has said the company plans to use Nvidia hardware exclusively to build its data centres.
SpaceX shares erased gains in US postmarket trading following the FT report, falling 1.2% to $169.79, while Nvidia's stock rose fractionally. In August, Nvidia partnered with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR on financing platforms aimed at mobilising more than $500 billion for AI infrastructure projects.
Sources:
- CNBC TV18 / Bloomberg — SpaceX seeks $40 billion to buy Nvidia chips (October 7, 2026)
- The Business Times — Musk's SpaceX in talks to borrow US$40 billion to buy Nvidia chips (October 7, 2026)
According to people familiar with the matter cited by the FT and Bloomberg, the rocket company is seeking about $10 billion in bank loans and $30 billion in investment-grade debt. Apollo Global Management is expected to lead the financing, with bond fund Pimco among the lenders in talks to participate. The sources said the discussions are at an early stage and could end without a deal being completed, with any transaction expected to close in 2027.
Nvidia, SpaceX and Apollo did not immediately respond to requests for comment, while Pimco declined to comment.
The proposed fundraising underlines the insatiable demand for computing power among AI developers. Tech companies and AI labs are investing and borrowing hundreds of billions of dollars to build and lease giant data centres packed with chips to power AI systems — a worldwide expansion of computing capacity that has sent the cost of land, chips and power-generation equipment soaring.
Musk's AI infrastructure push
Just last month, Musk said Colossus 2, an AI computing cluster built by his xAI business near Memphis, could more than double its current Nvidia chip count by the end of the year. Colossus 2 now has 110,000 Nvidia GB200 chips and 440,000 GB300 chips, Musk said in a post on X, with another 220,000 GB300s due to be operational next week and further tranches expected in November and possibly late December.
Musk, who took SpaceX public in June in a record $86 billion IPO, has said the company plans to use Nvidia hardware exclusively to build its data centres.
SpaceX shares erased gains in US postmarket trading following the FT report, falling 1.2% to $169.79, while Nvidia's stock rose fractionally. In August, Nvidia partnered with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR on financing platforms aimed at mobilising more than $500 billion for AI infrastructure projects.
Sources:
- CNBC TV18 / Bloomberg — SpaceX seeks $40 billion to buy Nvidia chips (October 7, 2026)
- The Business Times — Musk's SpaceX in talks to borrow US$40 billion to buy Nvidia chips (October 7, 2026)
