SpaceX shares sink as investors question the company’s growing AI costs

### SpaceX Seeks $40 Billion Financing to Fund Major Nvidia AI Chip Purchase

Elon Musk’s SpaceX is seeking to raise about $40 billion in financing to fund a major purchase of Nvidia’s artificial intelligence chips, highlighting the enormous capital requirements emerging from the global AI infrastructure race.

The proposed financing would reportedly consist of about $10 billion in bank loans and another $30 billion in investment-grade debt. Apollo Global Management is expected to lead the transaction and help distribute the debt to a broad group of investors, while bond manager PIMCO is among the institutions reportedly discussing participation.

The financing discussions are still in progress, and the transaction is not yet public. Reports indicate that the deal could close in 2027, although the final structure and terms could change before completion.

The financing plans put further attention on SpaceX’s rapidly expanding AI ambitions. Musk has indicated that the company intends to use Nvidia hardware extensively as it develops data-center capacity to support AI computing.

The news initially weighed on SpaceX shares. The stock declined about 2% in early trading following reports of the proposed financing, after having remained above the company's $135 IPO price since its public debut in June.

SpaceX completed an $86 billion initial public offering in June and subsequently raised $25 billion through high-grade bonds. The latest borrowing proposal would represent another substantial expansion of the company's debt-funded investment program.

The company's growing appetite for capital reflects the scale of the AI infrastructure buildout. Technology companies are spending heavily on advanced processors, data centers, electricity and networking equipment as they compete to develop and operate increasingly powerful AI systems.

Morgan Stanley estimates that AI infrastructure could require approximately $1.5 trillion in external financing by 2028, underscoring why companies across the technology sector are increasingly turning to debt and other financing structures to fund expansion.

SpaceX is also expanding its own computing infrastructure. Musk has said that the company's AI data-center operations will rely exclusively on Nvidia hardware, while xAI’s Colossus 2 facility could more than double its Nvidia chip deployment by December.

The planned financing comes as Nvidia itself works with major financial institutions to create new ways of funding AI infrastructure. Nvidia has partnered with firms including Apollo, BlackRock, Blackstone, Goldman Sachs and KKR on financing initiatives intended to mobilize more than $500 billion for AI infrastructure projects.

That financing ecosystem has also raised questions about the growing use of debt, private credit and other structures to fund the AI boom. Investors have increasingly focused on whether the enormous spending required to build computing capacity will generate enough revenue to justify the borrowing.

Nvidia has argued that its AI processors can remain productive for many years, but some lenders have been more cautious about treating advanced GPUs as long-term collateral. Credit investors have sought stronger guarantees or dependable customer revenues in some AI financing arrangements.

For SpaceX, the strategy represents a significant expansion beyond its traditional aerospace and satellite businesses. The company is betting that its ability to rapidly build computing infrastructure can turn access to large quantities of AI hardware into a major new business opportunity.

The financing also allows SpaceX to fund the expansion primarily through debt rather than issuing additional equity, potentially avoiding further dilution for existing shareholders.

However, the scale of the borrowing means investors will closely watch SpaceX’s debt levels and the returns generated by its AI infrastructure. Reuters reported that SpaceX’s shares and credit instruments came under pressure following news of the financing plan.

The proposed $40 billion transaction therefore illustrates both the opportunity and financial risks surrounding the AI infrastructure boom. As companies race to secure scarce computing capacity, the ability to raise enormous amounts of capital is becoming almost as important as the technology itself.