• SpaceX (SPCX) has entered a binding commitment for a $40 billion master finance lease with Apollo Global Management (APO), according to an SEC filing.
  • Apollo will purchase GPU pods and related equipment and lease them to SpaceX, with aggregate scheduled principal payments expected to total $40 billion.
  • The agreement is expected to close before year-end 2026, highlighting the enormous capital requirements of AI expansion.

A Landmark Deal for AI Infrastructure

SpaceX has entered into a binding commitment for a master finance lease with Apollo Global Management ($APO), according to an SEC filing. Under the agreement, Apollo will purchase GPU pods and related equipment and lease them to SpaceX. The aggregate scheduled principal payments are expected to total $40 billion, with the transaction anticipated to close before year-end 2026. The deal represents one of the largest known financing arrangements for AI computing infrastructure and underscores the capital intensity of the sector.

The filing, disclosed on Monday, marks a significant step in SpaceX’s efforts to expand its AI capabilities. The company has rapidly evolved from a rocket launch provider to a diversified technology firm, following its February 2026 merger with xAI. That combination brought artificial intelligence models and large-scale computing infrastructure into the same corporate fold as Starlink and launch services. AI has since become SpaceX’s largest revenue segment, generating $7.56 billion in the third quarter of 2026, up from just $813 million a year earlier.

Financing Structure and Participants

People familiar with the matter said the financing is being arranged by a Goldman Sachs (GS)-led team of bankers, with Apollo leading a group of investors. Apollo-backed Atlas SP was expected to manage the financing vehicle, and PIMCO had also considered participating. The structure is said to involve a special-purpose vehicle and institutional debt placements, although the definitive terms have not been publicly disclosed.

Elon Musk, SpaceX’s chief executive, said on October 25 that the financing had “closed,” but Bloomberg subsequently reported that pricing discussions were still ongoing. Reuters (TRI) independently reported Musk’s announcement but did not confirm all closing terms. The discrepancy highlights the distinction between a binding commitment and final debt pricing, which can occur at different stages. Musk added that the financing primarily covers GPUs arriving in the first and second quarters of 2027 and will not be a major factor in the current quarter. He described the arrangement as primarily callable debt—financing that can be repaid early.

SpaceX’s Capital-Intensive Growth

The deal comes as SpaceX’s capital expenditures have surged. In the third quarter, capital spending reached $19.6 billion, including more than $16.4 billion for AI, exceeding total quarterly revenue of $14.58 billion. The company reported net income of $4.4 billion, a sharp turnaround from a $1.05 billion loss a year earlier, while operating income came in at $2.8 billion. Launch revenue contributed $1.77 billion, up slightly from $1.67 billion.

The financing allows SpaceX to accelerate equipment deployment without an immediate equity raise, but it also adds future payment obligations. The company’s ability to generate durable cash flow from renting out computing capacity will be critical. Musk has projected annual recurring revenue of $500 billion to $1 trillion by the end of 2027—a management forecast that has not been independently validated.

Apollo’s Expanding Role

For Apollo, the transaction reinforces its position as a major institutional financing platform. The firm reported approximately $1.05 trillion in assets under management as of June 30, 2026. Its second-quarter results included $1.336 billion of net income attributable to common shareholders, $1.314 billion of adjusted net income, and $785 million of fee-related earnings. Apollo’s role in the SpaceX deal is not necessarily to commit $40 billion of its own corporate cash; rather, it is arranging financing for a broader investor group.

Regulatory and Local Hurdles

The AI infrastructure buildout faces increasing scrutiny. Reuters reported in July that xAI had installed 59 gas turbines for its Colossus 2 project without federal clean-air permits, a matter that has drawn litigation from community and environmental groups. In October, Memphis approved a 135-day pause on data-center development, reflecting local resistance to rapid expansion. These issues could affect the timeline for deploying the leased GPUs.

What’s Next

The most important milestones are definitive financing terms, confirmation of closing, GPU deliveries, and the readiness of facilities to operate the equipment. Musk’s stated delivery window is the first half of 2027, while the pre-year-end 2026 closing expectation comes from the supplied headline and has not been independently verified. Until the definitive agreement is available—including lease duration, financing cost, guarantees, repayment schedule, collateral rights, and accounting treatment—the $40 billion headline establishes the scale of the ambition more clearly than the final distribution of risk.

Correction: An earlier version of this article misstated the timing of Musk’s statement about the financing closing. It was made on October 25, not October 26.