The competition for processing capacity is increasingly playing out in the debt markets. SpaceX is reportedly considering a $40 billion funding package to acquire Nvidia hardware, as Elon Musk ramps up the company's AI ambitions.
Financing Structure
Per the Financial Times, which cited individuals familiar with the matter, the aerospace firm wants to raise roughly $10 billion via bank loans and $30 billion through investment-grade debt. This transaction is currently being finalized and is slated for a 2027 completion.
Apollo Global Management is expected to lead the deal's organization and debt distribution, with Pimco among a select group of potential lenders in discussions.
Investment Grade and AI Infrastructure
With a BBB credit rating, SpaceX qualifies as investment grade. This status allows the company to tap into a larger pool of institutional capital, including pension funds and insurers that typically avoid lower-rated securities.
The magnitude of this financing highlights the massive capital required for AI development. Beyond the chips themselves, funds are needed for data centers, power supply, and supporting infrastructure. While Apollo and Pimco declined to comment, SpaceX and Nvidia did not immediately respond to inquiries.
