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- SpaceX is seeking about $40 billion: roughly $10 billion in bank loans and $30 billion in investment-grade debt.
- SPCX fell about 1% after hours Tuesday and about 1.6% in Wednesday premarket trading.
- Apollo would lead the financing, and the deal is expected to close in 2027.
SpaceX stock slipped after a report that the company is seeking $40 billion in Apollo-led debt to fund a large Nvidia AI chip order, with closing expected in 2027.
Lead
SpaceX (NASDAQ: SPCX) is seeking about $40 billion in financing to pay for a large order of Nvidia (NVDA) AI chips, the Financial Times reported on October 6. The package would combine about $10 billion in bank loans with $30 billion in investment-grade debt. Apollo Global Management (APO) would lead the deal and place the paper with a broad group of investors. SpaceX stock fell about 1% in extended trading Tuesday and about 1.6% in premarket trading on October 7, after a roughly 15% gain over the previous five sessions that lifted its market value to about $2.17 trillion. Nvidia shares rose about 0.5% after hours. SpaceX, Nvidia and Apollo have not publicly confirmed the plan.What Is SpaceX Planning to Finance?
SpaceX is financing a purchase of Nvidia graphics processors for its AI data centers. Pimco is among a small group of lenders in talks to provide funding, and the transaction is expected to close in 2027. Bloomberg described the discussions as early-stage.
Chief executive Elon Musk has said SpaceX will use Nvidia hardware exclusively in its data centers. He has also said the Colossus 2 facility could more than double its Nvidia chip count by December. SpaceX earns revenue by renting this computing capacity to outside customers. Google has reportedly agreed to pay about $920 million a month for access to roughly 110,000 Nvidia GPUs.
Why Did SpaceX Stock Fall?
SpaceX stock fell because the filing-sized borrowing underscores how much capital its AI buildout requires. Investors were already focused on the company's heavy capital spending, and a $40 billion debt package adds leverage to a business that listed only four months ago.
The dip was modest and followed a sharp run-up, which left room for profit-taking. The shares have been volatile since the June 12 Nasdaq debut, when the IPO priced at $135 and closed its first day at $160.95. They reached a record $225.64 within three sessions, then retreated after the August 6 insider lock-up expiry and the company's first earnings report.
How Does the Debt Structure Work?
The deal pairs bank loans with investment-grade debt, a combination that signals lenders view the chip purchase as supported by contracted rental income. Investment-grade pricing generally carries lower borrowing costs than high-yield debt. It also opens the paper to a wider pool of insurers and pension funds, which is the buyer base Apollo is expected to tap.
The structure fits a broader pattern in which private credit managers and banks finance AI infrastructure alongside, rather than instead of, equity markets. Chips are the largest single cost in a data center, and financing them against long-term rental contracts spreads that cost over several years.
How to Buy SpaceX Stock
Outlook
The financing, if completed, would rank among the largest debt raises tied to AI hardware and would deepen the link between SpaceX and Nvidia. The near-term stock reaction has been small, and attention now turns to whether the companies confirm terms, the pricing investors demand for the bonds, and how quickly new capacity converts into rental revenue. With closing not expected until 2027, the deal will shape sentiment on SpaceX's capital spending well before funds are drawn.
Mentioned tickers: SPCX, NVDA, APO, GOOG