📌 SpaceX Plans USD 40 Billion Debt Financing to Procure NVIDIA Chips
SpaceX is planning a mega debt financing package totaling approximately USD 40 billion, with the funds dedicated specifically to procuring NVIDIA chips. The financing structure is expected to include about USD 10 billion in bank loans and USD 30 billion in investment-grade bonds, led by Apollo with participation from Pimco, and is slated to materialize in 2027.
On the capital operations level, the core consideration behind choosing large-scale borrowing to directly purchase chips is to avoid the equity dilution caused by issuing additional shares. This demonstrates that amid intense AI hardware competition, leading private companies are turning to mature credit leverage tools to secure critical computing power supplies, rather than relying solely on existing cash reserves or diluting equity.
On the business monetization side, this investment aims to build on SpaceX’s existing power and communications infrastructure to open up new growth vectors. According to buy-side analysis and projections, if external computing power leasing prices can reach around USD 50 per watt, the facility is expected to establish a computing power leasing business with self-sustaining cash flow generation capabilities alongside rocket launches and satellite communications, thereby offsetting the massive debt costs.
▌ Sources