SpaceX is in discussions to raise as much as $40 billion in debt to finance the purchase of Nvidia AI chips, marking a potentially massive financing deal for the company’s expanding artificial intelligence infrastructure.
The proposed package would combine $10 billion in bank loans with another $30 billion in investment-grade bonds. Apollo Global Management is leading the financing discussions, while Pimco is among the potential lenders.
The chips would be used across SpaceX’s Colossus data centres, which support its AI operations and power Grok models. The infrastructure is also tied to compute-leasing arrangements with companies including Anthropic and Google.
$40 Billion Financing Built Around AI Chips
The scale of the proposed borrowing stands out in a market where AI infrastructure is increasingly being financed through debt.
SpaceX is looking at a structure that would give it access to $40 billion without relying entirely on traditional bank financing. The proposed $10 billion loan component would be complemented by $30 billion in bonds aimed at investors in the debt markets.
The financing is intended to support the purchase of Nvidia hardware for SpaceX’s growing AI infrastructure.
For Nvidia, the arrangement would also represent a major chip sale to one of the biggest companies building AI computing capacity.
Nvidia Has a Unique Position in the Deal
The relationship between Nvidia and SpaceX adds another layer to the proposed financing.
Nvidia is SpaceX’s exclusive chip supplier and also has a significant financial interest in the broader business ecosystem around the company. Nvidia holds about $21 billion in SpaceX stock through its investment in xAI.
That connection has drawn attention to what analysts describe as a circular flow of money. Nvidia benefits when customers secure financing to purchase its chips, while those customers take on the debt needed to fund their AI infrastructure.
For SpaceX, the arrangement could provide the capital required to continue expanding its computing capacity. At the same time, it would leave the company responsible for servicing a much larger debt burden.
SpaceX Already Carries Heavy Debt
The proposed financing comes as SpaceX is already carrying roughly $65 billion in debt.
The company is also dealing with significant spending on AI infrastructure, with projected capital expenditure near $65 billion for the year and negative free cash flow.
Adding another $40 billion in borrowing would therefore put further pressure on the company’s balance sheet.
Some of SpaceX’s long-term bonds are also trading at spreads that resemble those normally associated with junk-rated debt, despite the company’s investment-grade ratings. That gap suggests investors are paying close attention to the risks surrounding its rapid expansion.
What Happens If AI Demand Slows?
A key question for investors is whether the computing capacity financed through the deal will remain fully utilised.
SpaceX is counting on demand for its AI infrastructure, including compute-leasing arrangements involving companies such as Google and Anthropic. If those contracts remain strong, the financing could demonstrate that large AI infrastructure projects can attract substantial amounts of debt capital.
The opposite scenario could be more difficult.
AI chips can lose value as newer generations of hardware arrive, creating a potential mismatch between long-term debt obligations and the value or earning power of the equipment purchased with that debt. A decline in demand for leased computing capacity could add another layer of pressure.
Nvidia and SpaceX Stocks React Differently
The market response to the reported financing discussions has highlighted the different risks investors see in the arrangement.
Nvidia shares moved slightly higher, suggesting that equity investors viewed the potential chip demand positively. SpaceX shares, meanwhile, declined, reflecting concerns about the additional leverage required to fund the AI expansion.
That contrast captures the central question surrounding the deal. For Nvidia, a $40 billion financing package could translate into a major hardware opportunity. For SpaceX, the same transaction would mean taking on a substantial new financial obligation.
The proposed financing could ultimately become a significant test for debt-funded AI infrastructure. If SpaceX can keep its computing facilities well utilised and generate enough contracted revenue to support the borrowing, the deal could encourage other companies to use debt for similarly large AI investments. If utilisation falls or chip values decline quickly, lenders and investors could face a very different outcome.
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