According to the British 'Financial Times', SpaceX, a company under Musk's aerospace division, is seeking to complete a $4 billion financing led by Apollo Global Management. The funds will be used to purchase NVIDIA chips.
According to sources cited in the report, the company that operates both rocket and artificial intelligence businesses plans to raise approximately $10 billion in bank loans and $30 billion in investment-grade debt to finance the chip purchases.
This transaction is expected to be completed in 2027.
After the news broke, SpaceX's stock dropped all of its gains during after-hours trading in New York, with the maximum decline reaching 1.8%; Nvidia's stock, on the other hand, rose by a maximum of 0.6%.
Reports say that NVIDIA, SpaceX, and Apollo did not respond to requests for comment.
Last month, Musk stated that the AI computing cluster Colossus 2 developed by his company xAI could potentially require more than double the number of NVIDIA chips by the end of the year. This billionaire provided the most detailed timeline to date for the expansion plans of this cluster in Memphis, and he is competing to increase the scale of AI computing capabilities.
Musk posted on the social platform "X" that Colossus 2 currently has 110,000 NVIDIA GB200 chips and 440,000 GB300 chips. Another 220,000 GB300 chips will be put into operation, and 220,000 more chips will be added in November. He added, "If everything goes well," another 220,000 chips will be added in December.
In August this year, NVIDIA reached agreements with several leading investment institutions in the United States to establish specialized financing platforms for NVIDIA's customers. Apollo is one of them.
According to reports, this collaboration plans to leverage over $500 billion in third-party funding for cloud providers, cutting-edge artificial intelligence laboratories, and various enterprises to expand data centers and purchase NVIDIA hardware. This could completely change the financing model for artificial intelligence infrastructure. The goal is to raise $500 billion in financing for AI infrastructure.
