Catenaa, Wednesday, October 07, 2026- Space is seeking to raise $40 billion from banks and bonds to buy AI chips from Nvidia, The Financial Times reported.
Citing sources, The Financial Times said Elon Musk’s space company is seeking about $10 billion in bank loans and $30 billion in investment-grade debt to fund its blockbuster chip order.
Private capital group Apollo is expected to lead the financing effort and help sell the debt to a broad base of investors, according to the FT report.
Reuters said the proposed financing comes as technology companies commit increasing amounts of capital to advanced processors and the data-centre infrastructure required for AI development.
Last Month, Morgan Stanley estimated that AI infrastructure will require $1.5 trillion in external financing by 2028, even as lenders and investors grow more cautious about funding the industry’s expansion.
Sources told FT that bond group Pimco was among a small group of lenders in talks to fund the deal, and the transaction is expected to close in 2027.
SpaceX’s financing plans underscore the vast sums that are being raised to pay for investments in data centres, chips and other infrastructure underpinning AI.
In September, Musk said SpaceX plans to use Nvidia chips exclusively to build its data centres, and added that xAI’s Colossus 2 data centre could more than double the number of Nvidia chips it uses by December.
SpaceX sold $25 billion high-grade bonds in less than 10 days after the company went public in June in a record $86 billion IPO.
However, the bonds declined in value in the following days as investors were concerned about SpaceX’s mounting debt and heavy capital expenditure.
According to MarketAxess data, bonds maturing in 2056 are trading at about 85 cents on the dollar, with a yield about 2.27 percentage points above US Treasuries, similar to junk bonds.
Reuters reported earlier that Nvidia partnered with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR in August on financing platforms intended to mobilize more than $500 billion for AI infrastructure projects.
In June, Apollo made the largest private credit transaction at the time by leading a $35 billion chip financing deal for processors made by Broadcom.
