Apollo global management
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SpaceX locks in $40B GPU financing deal with Apollo
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2 min read
SpaceX has secured a binding commitment for roughly $40 billion in financing for AI chips and related data-center equipment through an Apollo Global Management-managed entity. Apollo will purchase the GPUs and server hardware and lease them to SpaceX for about five to five-and-a-quarter years, beginning as each equipment tranche is delivered. SpaceX expects the transaction to close by the end of 2026, subject to closing conditions, with leases starting in the first half of 2027. Apollo said the financing will support delivery of Nvidia’s next-generation Vera Rubin chips for SpaceX’s terrestrial computing buildout. SpaceX CFO Bret Johnsen said the lease diversifies the company’s funding sources and supports its growth plans, adding that its AI infrastructure investments are seeing payback periods of less than one year as it expands compute for Grok and cloud services. SpaceX’s AI segment, including Grok, Cursor and cloud computing, generated $7.6 billion of the company’s $14.6 billion in third-quarter revenue. Capital expenditures reached nearly $20 billion, up from $6.9 billion a year earlier, and SpaceX expects to spend $35 billion to $40 billion in the fourth quarter. Elon Musk said companies focused solely on renting GPUs may face consolidation as debt investors become more wary of high AI infrastructure spending and limited profits.