Space Exploration Technologies Corp. (NASDAQ: SPCX) is reportedly planning a massive financing round to acquire computer chips from Nvidia Corp. (NASDAQ: NVDA). According to a report by Reuters citing the Financial Times, the Elon Musk-led company is seeking to raise approximately $40 billion in bank loans and investment-grade debt.
The financing structure involves about $10 billion in bank loans and $30 billion in investment-grade debt. Apollo Global Management (NYSE: APO) is expected to lead the deal and help place the debt with a broad range of investors. Pimco is among a small group of lenders in talks to provide financing for the transaction, which is expected to close in 2027.
SpaceX did not immediately respond to a request for comment from Benzinga. Apollo is already a partner in Nvidia’s financing initiatives; in August, the firm was named alongside BlackRock Inc., Blackstone Inc., Brookfield Asset Management, Goldman Sachs, and KKR & Co. Inc. to form financing platforms aimed at mobilizing over $500 billion for AI infrastructure.
SpaceX has previously committed to using Nvidia hardware exclusively for its data centers. Last month, Elon Musk stated that the company’s Colossus 2 data center would more than double its Nvidia chip capacity by December.
On Tuesday, SpaceX closed 0.49% lower at $171.92 and fell 1.15% to $169.94 during extended trading.
