SpaceX Reportedly Seeks to Borrow $40 Billion for Nvidia Chips Despite Holding $100 Billion Cash
Despite holding approximately $100 billion in cash and marketable securities as of June, SpaceX is reportedly planning to raise an additional $40 billion through a mix of bank loans and investment-grade bonds. The funds are intended primarily for purchasing chips from Nvidia to support its artificial intelligence infrastructure expansion. Asset manager Apollo Global Management is expected to lead the financing deal, which could close by 2027. The company's capital expenditures have surged in recent quarters, with $15.8 billion of second-quarter spending allocated specifically to AI computing infrastructure. SpaceX’s cash generation from operations has not kept pace with its rapid spending rate, and CFO Bret Johnsen indicated that the high level of investment is expected to continue through at least 2026. CEO Elon Musk also hinted at a significant increase in computing capacity by late 2027. The proposed $40 billion financing would nearly double SpaceX’s current debt load from around $39.5 billion, bringing it close to $80 billion total. However, the company's strong market valuation of approximately $2.3 trillion and its focus on maintaining an investment-grade balance sheet suggest that this level of borrowing is being managed with strategic intent.
Topics: AI infrastructure capital expenditures debt financing SpaceX