Apollo Capital and Banks Discuss Financing SpaceX’s $40 Billion Nvidia GPU Purchase
Apollo Capital Management is reportedly leading discussions with several banks to help finance SpaceX's planned purchase of $40 billion worth of Nvidia graphics processing units (GPUs). The deal, still in preliminary stages, will likely rely on the investment-grade debt market and use GPUs as collateral. This follows a recent trend where major tech companies like Meta, Amazon, and Google have also issued significant bond sales to fund AI infrastructure expansion. SpaceX previously raised $25 billion through bonds just four months ago after its IPO in June 2024, which was met with strong demand from fixed-income investors. However, the market for AI-related debt has since weakened, with credit spreads widening and yields rising as investors become more selective about their exposure to AI-driven projects. The deal highlights growing investor caution around financing large-scale GPU purchases amid concerns over valuation sustainability and increasing borrowing costs.
