Key Notes
- SpaceX is discussing a $40 billion financing package to purchase Nvidia AI chips, with an agreement still uncertain.
- AI accounted for $15.83 billion of SpaceX’s $18.37 billion capital expenditure in the second quarter.
- The company raised $25 billion through senior unsecured notes in June, partly to refinance an existing bridge loan.
Space Exploration Technologies Corp. (NASDAQ: SPCX), Elon Musk’s SpaceX, is in talks to borrow $40 billion to purchase artificial intelligence chips from Nvidia Corp. (NASDAQ: NVDA), adding another potential financing package to its expanding computing business.
The Financial Times reported that the proposed financing would combine about $10 billion in bank loans with $30 billion in investment-grade debt. Apollo Global Management Inc. (NYSE: APO) is expected to lead the arrangement and distribute the debt to investors, with Pimco among the prospective lenders. The transaction could close in 2027.
The discussions remain preliminary. Bloomberg separately reported that SpaceX is speaking with banks and investment managers, including Pimco, and that the talks could end without an agreement. Neither report establishes that the company has secured the money or completed the chip purchase.
AI Spending Drives the Funding Requirement
The scale of SpaceX’s investment is already visible in its quarterly results. Capital expenditure reached $18.37 billion in the three months ended June 30, including $15.83 billion in AI. That puts most of the quarter’s spending in computing infrastructure rather than rockets or satellite connectivity.
The AI segment generated $2.56 billion in second-quarter revenue and recorded a $1.26 billion operating loss. Connectivity, which includes Starlink, produced $4.29 billion in revenue and $1.66 billion in operating income. Those figures show why rapid growth in AI does not yet translate into operating profitability.
Group revenue rose 92% from a year earlier to $7.81 billion, while the net loss narrowed to $541 million. SpaceX also reported approximately $100 billion in cash, cash equivalents and marketable securities at the end of June. That balance is a dated financial snapshot, rather than a statement of cash available today.
For investors, the contrast is significant: a large cash reserve can support expansion, but an infrastructure business still needs enough paying customers to cover operating costs, replace equipment and service its financing. Buying more processors increases capacity before it establishes the returns that capacity will earn.
Another Debt Deal After June’s Bond Sale
SpaceX has already tapped debt markets this year. Its SEC filing records a $25 billion senior unsecured note issuance in June, with five maturities extending from 2031 to 2056. Coupon rates range from 5.35% to 6.65%, with a weighted average of 5.855%.
Those proceeds repaid a $20 billion bridge loan, covered related fees and supported general corporate purposes. The earlier issuance therefore included refinancing; it should not be treated as $25 billion of additional cash wholly earmarked for AI chips.
The same filing shows $3.47 billion of operating cash inflow against $28.48 billion of property, plant and equipment purchases in the first half of 2026. These six-month figures illustrate the gap between internally generated cash and investment spending. They are separate from the second-quarter figures above.
A new loan or debt placement could fund purchases without an immediate sale of additional shares, but it would introduce repayment obligations. The interest rate, maturity, collateral and guarantees of the proposed transaction have not been disclosed in the reports. June’s bond terms do not establish the cost of the new financing.
Nvidia Connects Chip Demand With Capital Providers
The proposed arrangement comes as Nvidia builds relationships with financial institutions to help customers pay for computing infrastructure. On August 10, the company announced partnerships with Apollo and five other investment groups to establish independent financing platforms targeting more than $500 billion in third-party capital over time.
Nvidia said the memorandums of understanding were intended to create pools of funding for AI labs, enterprises and cloud operators. Its announcement also said the partnerships remained subject to final agreements. The headline amount is a capital-mobilization objective, rather than completed lending or guaranteed Nvidia revenue.
Apollo’s involvement in both announcements provides context for the talks. However, the reports do not specify whether the SpaceX transaction would formally sit within those platforms. The potential financing should be assessed on its own terms once a definitive structure is available.
What the Talks Mean for SPCX Shareholders
The borrowing report follows SpaceX’s move above $175 during Tuesday’s session, as we reported. Reuters said the shares subsequently fell about 1% in extended trading after the financing report, while Nvidia gained roughly 0.5%. Those were October 6 after-hours readings, rather than Wednesday’s live prices or final returns.
The investment case also extends beyond the size of a financing package. As we previously reported, Citi’s long-term SpaceX valuation scenario depends on commercial expansion following Starship’s technical progress. Borrowing for computing capacity adds a further requirement: that the assets generate cash sufficient to justify their cost.
The next meaningful disclosures will be whether lenders commit funds, how the debt is structured and when the processors are delivered and deployed. Until then, the $40 billion figure describes a transaction under discussion, with its funding cost and ultimate effect on earnings still unresolved.
