SpaceX in Talks for $40 Billion Debt Package to Finance Nvidia GPUs

SpaceX is in active talks with Apollo Capital Management and a group of banks to secure $40 billion in financing to buy Nvidia graphics processing units, as reported by CNBC Business (https://www.cnbc.com/2026/10/07/spacex-nvidia-chips-apollo-financing.html). The discussions, which follow an initial report by the Financial Times, indicate the transaction will primarily tap the investment-grade debt market.

The planned financing is expected to use the newly acquired Nvidia GPUs as physical collateral. Apollo Capital is playing a lead role in structuring the transaction, though the firm declined to comment on the negotiations. Nvidia did not immediately respond to requests for comment.

The transaction would mark SpaceX's second massive foray into the debt markets this year. In late June, two weeks after its mid-June initial public offering, the company issued $25 billion in bonds across multiple maturities. However, credit conditions have shifted since that initial issuance: artificial intelligence-related corporate debt has faced selloffs, and credit spreads have widened across the sector.

Lenders continue to treat high-performance computing hardware as viable collateral under the operating assumption that top-tier enterprise GPUs maintain residual market value for roughly seven years. Persistent global shortages of high-end compute have sustained those asset valuations even as fixed-income investors demand higher yields on broader AI infrastructure debt.

The multi-billion-dollar GPU order aligns with aggressive compute scaling outlined by SpaceX Chief Executive Elon Musk. In a September 24 post on X, Musk said the company's Colossus data center in Memphis, Tennessee, was operating 230,000 Nvidia chips, while Colossus 2 ran 550,000. Musk stated plans to more than double the company's installed base to 1.21 million chips by late December.

SpaceX has signed commercial compute supply agreements with companies including Google, Anthropic, Cursor, and Reflection AI to generate revenue from its hardware cluster. Even so, the scale of capital expenditure arrives as the company carries nearly $40 billion in balance-sheet debt reported in its second-quarter financial filings, with existing debt trading near junk bond levels amid tighter scrutiny from credit markets.