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SpaceX reportedly plans to raise $40 billion in loans and debt to purchase NVIDIA chips. The report was associated with continued weakness in SpaceX shares.
The article
SpaceX Reportedly Seeks $40 Billion in Loans, Debt to Buy Nvidia Chips Space Exploration Technologies Corp. (NASDAQ:SPCX) shares are trading lower Wednesday on possible continued weakness after reports that the company is planning to raise $40 billion in bank loans and investment-grade debt to buy NVIDIA Corp. (NASDAQ:NVDA) chips. SpaceX shares are experiencing downward pressure. Why is SPCX stock retreating? SpaceX Seeks $40 Billion in Loans and Debt for Nvidia Chips The Financial Times reported that SpaceX is looking to raise about $10 billion in bank loans and $30 billion in investment-grade debt for the chip order. Apollo Global Management is expected to lead the deal and help place the debt with a broad range of investors. The transaction is expected to close in 2027. SpaceX closed Tuesday 0.49% lower at $168.92 and fell 1.15% to $169.94 in extended trading, according to Benzinga Pro. Apollo Is Already Part of Nvidia’s Financing Push Apollo is one of six firms Nvidia partnered with in August, alongside BlackRock, Blackstone, Brookfield Asset Management, Goldman Sachs and KKR, on financing platforms meant to mobilize more than $500 billion for AI infrastructure. Big Tech is leaning more heavily on debt to fund the buildout. Amazon, Microsoft, Alphabet, Meta Platforms and Oracle issued about $200 billion of investment-grade debt in the first half of 2026, nearly double their issuance in all of 2025, according to iShares. JPMorgan estimates AI spending across the hyperscaler ecosystem could rise from roughly $700 billion this year to $1 trillion in 2027. SpaceX Doubles Down on Nvidia Earlier this year, Musk said SpaceX will use Nvidia hardware exclusively to build its data centers. He said last month that the Colossus 2 data center could more than double its Nvidia chips by December. Read Also: Stock Market Today: Dow Jones, Nasdaq 100 Futures Decline as Iran Mocks US Economy, Trump Sparks Bipartisan Backlash — STZ, PENG, LEVI in Focus SpaceX Shares Tumble Lower SPCX Price Action: At the time of writing, SpaceX shares are trading 2.32% lower at $167.97, according to data from Benzinga Pro. Image via Shutterstock