Menu

Search

  |   Business

Menu

  |   Business

Search

Google Add as a preferred source on Google

SpaceX Seeks $40 Billion for Nvidia AI Chips

SpaceX Seeks $40 Billion for Nvidia AI Chips. Source: SpaceX, CC0, via Wikimedia Commons

SpaceX is seeking to raise about $40 billion to finance a major purchase of Nvidia artificial intelligence chips, with Apollo Global Management expected to lead the fundraising effort, the Financial Times reported Tuesday.

Elon Musk’s rocket and AI company is looking to secure roughly $10 billion through bank loans and another $30 billion from investment-grade debt, according to people familiar with the plans cited by the FT. Apollo is expected to spearhead the transaction and assist in marketing the debt to investors.

Pimco is also reportedly among a small group of lenders discussing potential financing for the deal. The planned fundraising underscores the enormous amount of capital flowing into artificial intelligence infrastructure as technology companies race to secure advanced semiconductors, data centers and computing capacity.

Nvidia chips have become a critical component of the global AI boom because of their widespread use in training and operating advanced artificial intelligence models. SpaceX has developed particularly close ties with Nvidia, with Musk previously saying the company would exclusively deploy Nvidia chips in its Colossus data centers.

Colossus provides the computing infrastructure behind Grok, the flagship AI model developed by xAI. SpaceX absorbed Musk’s xAI startup ahead of its initial public offering earlier this year, bringing the billionaire’s space and artificial intelligence businesses more closely together.

The company has also sought to generate revenue from its rapidly expanding computing infrastructure by providing capacity to other major artificial intelligence developers. SpaceX has signed agreements to rent Colossus computing resources to companies including Anthropic and Alphabet’s Google.

If completed, the $40 billion financing would represent another major investment in AI infrastructure and highlight the intense competition for Nvidia’s high-performance chips. Technology companies are spending heavily to build the computing capacity required for increasingly sophisticated AI models, making access to advanced processors and data centers a central part of the industry’s expansion.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.