SpaceX enters $40 billion deal with Apollo for AI chip financing
The financing will help SpaceX buy Nvidia’s next-generation chips and related hardware as it expands its AI compute business, the company said.
- On Monday, SpaceX disclosed a binding agreement for roughly $40 billion in financing from Apollo Global Management Inc. to acquire AI chips and data center equipment.
- Despite maintaining investment-grade status, SpaceX faced recent debt market volatility; credit-default swaps tied to the company surged to 266 basis points last week, according to ICE Data Services.
- SpaceX CFO Bret Johnsen stated the lease addresses funding requirements, noting the company sees "less than one-year payback periods" on AI investments while the AI segment generated $7.6 billion in third-quarter revenue.
- Under the agreement, Apollo will purchase Nvidia Corp. Vera Rubin chips and lease them to SpaceX, with Goldman Sachs Group Inc. acting as sole structuring agent alongside anchor commitments from BlackRock Inc. and KKR & Co.
- Elon Musk argued Sunday that debt markets are closing for companies lacking diversified revenue, predicting "guppy-level death and consolidation" for neocloud startups as SpaceX expects lease payments to begin in the first half of 2027.
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The contract, which has not yet been definitively closed, will last approximately five years and will have a value close to $40 billion, plus interest and some commissions, according to a document presented to the United States Stock Exchange and Securities Commission (SEC). Apollo will buy the graphical processing units (GPU), considered the most powerful chips to create generational AI models. Chips are GPUs Vera Rubin from Nvidia, which Nvidi…
SpaceX, an American aerospace company founded by Elon Musk, announced on Monday (26) that it reached an agreement with the private investment giant Apollo Global Management to rent specialized chips for artificial intelligence development (AI).
Clarin
El EconomistaSpaceX and Apollo Global Management agree to lease Nvidia chips for AI for 40 billion, with delivery since 2027. XAI Colossus centers, essential for AI, will expand their capacity, doubling their power by the end of the year.
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