SpaceX (SPCX) is looking to raise $40 billion, led by Apollo Global Management (APO), to buy Nvidia (NVDA) chips. The package reportedly splits into about $10 billion of bank loans and $30 billion of investment-grade debt. Pimco is among a small group of lenders in talks, and a close is expected in 2027.
None of the companies has confirmed the deal. SpaceX shares slipped about 2% premarket on Wednesday to about $169.
Nvidia Is on Every Side of This Deal
Nvidia sells the chips. It’s also a SpaceX shareholder: it disclosed about 122.8 million shares in August, worth about $21 billion at Tuesday’s close. The stake came from its 2025 investment in xAI, before SpaceX absorbed it.
Apollo, the expected lead arranger, is one of six firms that signed preliminary agreements announced August 10 to establish independent Nvidia compute financing platforms targeting more than $500 billion in third-party capital over time. Jensen Huang pitched it on the idea that Nvidia compute is “fungible and transferable across customers.” SpaceX fits the bill: Elon Musk said on the August earnings call that it would build exclusively on Nvidia because “we think the Vera Rubin architecture is the best,” Reuters reported.
How Big Is $40 Billion?
For Nvidia, it’s about a fifth of a year’s data center sales. The segment brought in $193.7 billion in fiscal 2026 (ended January), up 68% from $115.2 billion a year earlier and four times fiscal 2024’s $47.5 billion.
For SpaceX, it’s barely two quarters of spending. Capital expenditure hit $18.4 billion in Q2 2026, up from $2.9 billion a year earlier. At that pace, $40 billion lasts about six and a half months.
Why Borrow With $100 Billion in the Bank?
SpaceX holds $93.5 billion in cash, plus $6.5 billion in short-term investments as of June. Total debt was $39.7 billion, up from $30.6 billion three months earlier.
So this isn’t a cash crunch. The loan lets SpaceX keep its IPO cash as a buffer while capex runs at about $74 billion a year. If the full $40 billion is added to SpaceX’s June debt balance, with no offsetting repayments or other changes, total debt would roughly double to about $80 billion. SpaceX would also be borrowing with the 10-year Treasury yield near 5.3%, close to its highest in more than two decades.
What It Means for NVDA and APO
For Nvidia, the proposed financing could support a large chip purchase, with the financing reportedly expected to close in 2027. It also shows how much AI demand now runs through credit markets: Morgan Stanley estimates AI infrastructure will need $1.5 trillion in external financing by 2028. Oracle (ORCL), which plans to raise $45 billion to $50 billion in debt and stock this year, shows the same pattern.
For Apollo, it’s a major test of the pitch that compute is an asset class worth lending against. My view: the demand is real, but Nvidia investors should watch the financing as closely as the orders. The final terms will show how much of Nvidia’s growth depends on lenders staying willing.
Want to see how fast SpaceX’s capex and debt are climbing, or how Nvidia’s data center sales have grown? Pull up the same charts on TIKR for free and track them as the deal takes shape. Learn more here.
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