Published: October 8, 2026 | Category: Business | By Mahesh
SpaceX plans to raise $40 billion to buy Nvidia AI chips, with asset manager Apollo Global Management expected to lead the deal, the Financial Times reported on Tuesday, October 6, citing people familiar with the matter [1]. The company is looking for about $10 billion in bank loans and $30 billion in investment-grade debt [1]. The report describes talks, not a signed transaction, and the sources I reviewed carry no comment from SpaceX or Nvidia.
Apollo is expected to help place the debt with a broad range of investors, and the bond fund Pimco is among a small group of lenders in talks to provide financing [1]. The transaction is expected to close in 2027 [1]. Shares of SpaceX fell 1 percent in extended trading after the report, while Nvidia's stock rose 0.5 percent [1].
The chips are meant for Musk's data center build-out. Musk, who took SpaceX public in June in a record $86 billion IPO, said last month that xAI's Colossus 2 data center could more than double the number of Nvidia chips it uses by December [1]. He has also said SpaceX plans to use Nvidia hardware exclusively for its data centers [1].
"The enormous capital requirement of the AI boom."Reuters, describing what the proposed SpaceX funding underscores [1]
The wider numbers explain why. Morgan Stanley estimates that AI infrastructure will need $1.5 trillion in external financing by 2028, even as lenders and investors grow more cautious about funding the industry's expansion [1]. In August, Nvidia partnered with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR on financing platforms meant to mobilize more than $500 billion for AI infrastructure projects [1]. Investing.com's copy of the Reuters report frames the SpaceX plan the same way, as a sign of how much money buyers need to secure advanced processors [2].
My reading, not a claim from the reports, is that this shifts part of the AI build-out from company cash and equity toward credit markets. A buyer that borrows to pay for chips makes Nvidia's order book depend partly on lenders staying willing, which matters because Reuters notes that some lenders are already more cautious. Terms such as interest rates, collateral and which chips and how many the money will buy are not in the sources, so the risk cannot yet be sized.
Indian readers should treat this as a signal about costs rather than a local story. Data centre operators and cloud buyers that plan AI capacity face the same chip supply and financing conditions, though none of the sources discuss India directly.
What to Watch Next
Four things to follow. First, whether SpaceX or Nvidia confirms the deal or its terms, since today's picture rests on sources [1]. Second, the pricing of the debt, because the interest rate will show how lenders view AI chip financing [1]. Third, whether the Nvidia-backed financing platforms announced in August start funding more buyers [1]. Fourth, whether lender caution shows up in other large AI hardware deals this quarter [1][2].
Sources
- Reuters via The Manila Times. "SpaceX seeks $40 billion financing led by Apollo to buy Nvidia chips," October 8, 2026. manilatimes.net
- Reuters via Investing.com. "SpaceX seeks $40 billion financing to buy Nvidia chips, sources say," October 2026. investing.com
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Article by Mahesh | Depth Grid
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