• SpaceX (SPCX) is reportedly seeking $40 billion in debt to purchase Nvidia (NVDA) AI chips, a move that would extend its push into large-scale AI computing.
  • The financing talks are at an early stage, and the company’s shares fell as investors weighed the spending burden.
  • The proposed deal highlights the growing use of private credit to fund AI infrastructure, but lender concerns over chip collateral and environmental issues loom.

SpaceX shares fell 1.5% on Tuesday following a Financial Times report that the company is seeking approximately $40 billion in debt financing to buy Nvidia AI chips. The stock closed at $169.79, down from the previous day, as investors digested the potential scale of the borrowing and its implications for the company’s balance sheet.

The financing, if completed, would be one of the largest ever for AI hardware purchases and would mark a significant escalation in SpaceX’s shift from its traditional rocket and satellite broadband businesses into AI computing. The company, which went public in June 2026, has been rapidly expanding its AI capabilities, including through its merger with xAI earlier this year.

According to the Financial Times, SpaceX is seeking about $10 billion in bank loans and $30 billion in investment-grade debt. Apollo Global Management (APO) is expected to lead the financing and distribute the debt to investors, with Pimco among prospective lenders. Closing is reportedly expected in 2027. Sources familiar with the matter caution that discussions are at an early stage and could still fall apart.

SpaceX, Apollo, Nvidia, and Pimco did not immediately respond to requests for comment.

The move comes as SpaceX faces mounting capital expenditures for its AI ambitions. The company reported $18.37 billion in capital expenditures in the second quarter of 2026, more than six times the year-earlier level. AI capital expenditure alone was $15.83 billion, absorbing the vast majority of the group’s investment spending. Despite revenue surging 92% year over year to $7.81 billion, SpaceX posted a net loss of $541 million in the quarter, though that was narrower than the approximately $1 billion loss a year earlier.

Elon Musk, SpaceX’s CEO, said in August that the company would build its AI data centers exclusively with Nvidia hardware, targeting more than 2 gigawatts of computing capacity by year-end 2026 and closer to 10 gigawatts by the end of 2027. Those are management targets, not yet delivered. The proposed financing would be material relative to SpaceX’s existing debt and finance leases, which stood at $36.8 billion as of the second quarter.

Nvidia shares rose about 0.5% in extended trading following the report, a divergence that suggests investors see potential chip demand even as they question SpaceX’s ability to shoulder the additional debt. The reaction echoes concerns that emerged after SpaceX’s first post-IPO earnings report in August, when shares fell 8% in extended trading despite better-than-expected revenue, as investors balked at the soaring AI spending.

The financing structure appears to rely heavily on private credit, reflecting a broader trend of funding AI infrastructure through debt rather than solely from technology companies’ cash reserves. In August, Nvidia announced partnerships with Apollo, BlackRock (BLK), Blackstone (BX), Brookfield (BAM), Goldman Sachs (GS), and KKR (KKR) aimed at mobilizing more than $500 billion of third-party capital over time—an ambition, not yet deployed. The SpaceX transaction is not reported to be part of that initiative, and there is no indication of an Nvidia guarantee.

Lenders have raised questions about whether advanced chips retain enough value to serve as long-term collateral, according to Reuters. The rapid depreciation of AI hardware could leave debt obligations outlasting the most profitable use of the chips, a risk that could transmit losses to banks and institutional investors. The reported financing does not disclose final pricing, collateral, or covenants.

Beyond the balance sheet, SpaceX’s AI buildout has also drawn environmental scrutiny. Reuters reported in July that xAI’s Colossus 2 power project used dozens of gas turbines without federal clean-air permits. The company subsequently agreed to remove all 69 temporary turbines by July 2027 while transitioning to a permitted, permanent 1.2-gigawatt power plant. That controversy predates the financing report but remains a backdrop as SpaceX seeks to expand its computing footprint.

The proposed financing would also test whether AI computing can become a durable, financeable infrastructure asset. SpaceX has already reported agreements to provide computing capacity to Google (GOOGL), Anthropic, and Reflection AI, with the Google deal expected to bring in $920 million monthly. CFO Bret Johnsen said in August that AI-compute capital deployment could achieve less than a one-year payback, though that is a management assertion, not an independently verified outcome. Analysts at Phillip Capital have projected negative cash flows until at least 2030.

Expert views remain divided on the ultimate payoff. New Street analyst James Ratzer described orbital data centers—a collaboration between SpaceX and Nvidia announced in August—as a potentially major opportunity, but one that extends into the next decade. The current financing report does not specify how the chip purchases would be allocated between terrestrial and orbital deployments.

For now, the market’s negative reaction underscores the delicate balance SpaceX must strike between ambitious growth and financial prudence. With $93.5 billion in cash and equivalents, the company has ample liquidity, but the proposed $40 billion debt load would significantly increase its leverage. The coming weeks will be crucial as investors watch for confirmation of lender commitments, terms, and whether the deal can close as planned in 2027.