SPCX: SpaceX Chases $40 Billion for Nvidia Chips. Why Go to Mars When You Can Compute?

Apollo is reportedly leading the financing effort as Musk expands his AI infrastructure. Shares slipped after hours, putting the cost of that expansion back in focus.

💰 $40 billion financing plan takes shape

• SpaceX SPCX is seeking $40 billion to purchase Nvidia AI chips, the Financial Times reported Tuesday.
• The proposed transaction highlights how much capital Musk’s computing ambitions require. It remains a financing plan under discussion, with completion reportedly expected in 2027.
• The package would comprise around $10 billion in bank loans and $30 billion in investment-grade debt. Borrowing would fund expansion without issuing new shares through this transaction, but it would add interest payments and repayment obligations.
• Apollo Global Management is expected to lead the deal and place the debt with investors, with Pimco among potential lenders in talks.

🖥️ Nvidia benefits as SpaceX expands its computing capacity

• Musk said last month that SpaceX’s supercomputer Colossus 2 could more than double its Nvidia chip count by December. He has also said SpaceX would use Nvidia hardware exclusively for its data centers.
• The financing push fits a broader industry effort. Nvidia announced partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to mobilize more than $500 billion of third-party capital for AI infrastructure over time.
• SpaceX closed…