SpaceX seeks $40 billion in financing from Apollo and banks for Nvidia GPU purchase

SpaceX is working with Apollo Capital Management and a group of banks to finance a $40 billion purchase of Nvidia graphics processing units, deepening Wall Street’s exposure to the AI infrastructure buildout. The talks signal that debt markets, not just equity, are now central to how the biggest AI buyers fund their chip spending.

• SpaceX is seeking $40 billion in financing to buy Nvidia GPUs, with Apollo in a lead role
• SpaceX raised $25 billion in bonds in mid-June, two weeks after its record-breaking IPO
• Credit spreads on AI-related bonds have widened since June, and investors now demand higher yields

• $40B size of SpaceX’s planned Nvidia GPU financing deal
• $25B SpaceX bond sale completed in mid-June, four months earlier
• 7 years expected useful life of GPUs used as loan collateral

SpaceX is in discussions with Apollo Capital Management and several banks to arrange financing for $40 billion worth of Nvidia graphics processing units, according to a person familiar with the talks who spoke to CNBC on condition of anonymity. The Financial Times first reported on the talks, with CNBC reporting additional detail on structure and market context.

The deal is expected to lean primarily on the investment-grade debt market. That is the same market SpaceX tapped just four months ago.

Apollo set to lead a deal built on investment-grade debt

The person familiar with the talks told CNBC that Apollo is playing a leading role in facilitating the $40 billion financing, alongside multiple banks still in discussions with SpaceX. The structure will likely use the Nvidia GPUs themselves as collateral backing the debt, the person said. Apollo declined to comment, and Nvidia did not immediately respond to a request for comment.

SpaceX’s return to debt markets follows its bond sale in mid-June, roughly two weeks after what CNBC described as a record-breaking IPO. That earlier deal raised $25 billion across multiple bond durations and drew what the company was told at the time was unusually strong demand from fixed-income investors.

GPU collateral rests on a seven-year value assumption

A person in the credit industry told CNBC that the market is still pricing GPU-backed debt on the assumption that the chips retain value for about seven years. That timeline underpins how lenders are willing to treat Nvidia hardware as loan collateral.

The person pointed to ongoing scarcity of computing power as support for that assumption, noting the shortage of high-performing GPUs is not expected to ease soon. Persistent demand for Nvidia’s chips across AI data center buildouts has kept pricing and resale value elevated even as broader AI credit conditions shift.

Those conditions have moved against borrowers since SpaceX’s June bond sale. CNBC reported that AI-related bonds have sold off in the months since, and credit spreads tied to the sector have widened.

Meta, Amazon and Google issuances set the pattern SpaceX now follows

SpaceX’s planned $40 billion raise would follow a string of large bond issuances from Meta, Amazon and Google, as the cost of funding AI infrastructure climbs across the industry. Both sources who spoke with CNBC said additional AI-linked debt sales are expected from major buyers in the months ahead.

Fixed-income investors are now demanding higher yields to hold this paper. Both sources described that as a sign investors are becoming more selective about their AI exposure rather than stepping back entirely.

The BlockWest read. Using GPUs as direct collateral pushes AI credit risk onto a depreciating physical asset rather than corporate cash flow, a structure untested at this scale. If Nvidia’s next-generation chips outpace the seven-year value assumption sooner than lenders expect, Apollo and the banks involved, not SpaceX, absorb the first losses. Watch whether other GPU buyers follow this collateral structure or stick to unsecured corporate bonds.

Terms, pricing and the final list of participating banks have not yet been disclosed, and neither Apollo nor Nvidia has commented publicly on the discussions. CNBC and the Financial Times both indicate talks are ongoing, leaving the deal’s structure and timing as the next details to watch for.

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