Quick Read
SpaceX is borrowing $40 billion for NVIDIA chips while posting a $541 million quarterly loss on capex more than double its revenue.
Apollo Global Management is expected to lead the deal, as Morgan Stanley warns AI infrastructure will need $1.5 trillion in outside financing by 2028.
Lockup expirations will release up to 1.3 billion SpaceX shares after Q3 earnings, pressuring stock as insiders sell right after a post-IPO rally.
Read More: Learn 7 ways to generate income with a $1,000,000+ portfolio (sponsor)
A recent report citing people familiar with the matter said SpaceX (NASDAQ:SPCX) is seeking about $40 billion of financing to pay for an order of AI chips from NVIDIA (NASDAQ:NVDA). In after-hours trading, SpaceX fell about 1%, and NVIDIA rose about 0.5%.
Under the reported plan, SpaceX would take on the debt to fund the purchase, while NVIDIA would record the chip order as revenue when it ships.
SpaceX, Apollo Global Management (NYSE:APO) and NVIDIA did not immediately respond to requests for comment. The financing remains at the discussion stage.
What SpaceX Has Committed Versus What It Only Seeks
SpaceX is reportedly seeking about $10 billion in bank loans and about $30 billion in investment-grade debt. Investment-grade means bonds rated as having low default risk, which pension funds and insurance companies can hold.
The bank loans are the easier part, because a small group of lenders can agree on terms quickly, but selling bonds that large to a wide investor base requires work with rating agencies and a marketing process that takes quarters.
Apollo is expected to lead the deal and place pieces with other buyers. Pimco is among the lenders in talks.
The financing is expected to close in 2027, which means the terms, the lender group and the final size could all still change before any money moves.
Spending Has Outgrown Revenue
In the second quarter of 2026, SpaceX reported revenue of $7.81 billion against capital spending of $18.37 billion, of which $15.83 billion went to AI. It posted a net loss of $541 million.
Learn 7 Ways To Generate Income With A $1,000,000+ Portfolio
If you’ve saved over $1,000,000, this guide is for you. The last thing you want in retirement is to run out of money, you want your money to generate lasting income while you enjoy your life.
Now you can learn the strategies wealthy retirees use to fund their retirement with The Definitive Guide to Retirement Income from Fisher Investments. Download the guide today! (sponsor)
On the August 4 earnings call, management said the next two quarters should look “very similar” on spending, and Elon Musk said, “So we’re exclusive to NVIDIA.”
Source: finance.yahoo.com
