SpaceX Plans to Raise $40 Billion to Purchase Nvidia Chips

SpaceX is seeking to raise approximately $40 billion in funding, led by Apollo Global Management, to procure Nvidia chips and further expand its investments in the AI sector. The financing plan includes about $10 billion in bank loans and $30 billion in investment-grade debt, expected to be completed by 2027, with institutions like Pimco participating in the related financing discussions. SpaceX currently holds a credit rating of BBB, which is the second-lowest investment-grade rating, allowing its bonds to be purchased by institutional investors such as insurance companies and pension funds. This financing will strengthen SpaceX's collaboration with Nvidia, with Musk stating that SpaceX has decided to exclusively adopt Nvidia technology and believes its Vera Rubin architecture is the best AI computing architecture. The financing plan highlights the significant demand for funding in AI data centers, chips, and related infrastructure construction. Previously, SpaceX received an investment-grade rating following its IPO in June and issued $25 billion in senior bonds, but concerns over increased debt levels and capital expenditures led to a decline in bond prices.

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