SpaceX Agrees to $40 Billion Chip-Financing Deal With Apollo

SpaceX signed a roughly $40 billion equipment-finance lease with Apollo Global Management Inc. to pay for the chips needed to fuel its artificial intelligence ambitions.

The fixed-rate that the company will pay will be determined at pricing, which hasn’t yet occurred, SpaceX said in a filing Monday. The deal is expected to close before year-end, and the leases are expected to start in the first half of next year.

Elon Musk touted the deal to help finance purchases of Nvidia Corp.’s graphics processing units in a post on X over the weekend.

The agreement comes on the heels of a tumultuous week for AI companies in debt markets as concern mounted over the industry’s rapid spending, and limited profits so far to show for it. With investors demanding increasingly large premiums to finance the AI build-out, the volatility roiled pricing discussions over the SpaceX debt, which is being structured as private bonds to be issued by an off-balance sheet entity.

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