{"id":947340,"date":"2026-10-26T20:54:11","date_gmt":"2026-10-26T20:54:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/947340\/"},"modified":"2026-10-26T20:54:11","modified_gmt":"2026-10-26T20:54:11","slug":"spacex-locks-in-40b-gpu-financing-deal-with-apollo","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/947340\/","title":{"rendered":"SpaceX locks in $40B GPU financing deal with Apollo"},"content":{"rendered":"

SpaceX has reached a binding commitment for roughly $40 billion in financing for AI chips and related data center equipment, the company\u00a0disclosed in a regulatory filing Monday<\/a>. In a statement, SpaceX called the deal the\u00a0\u201clargest committed GPU financing\u201d<\/a>.\u00a0<\/p>\n

Under the agreement, an entity managed by Apollo Global Management, the New York-based private equity giant, will buy the chips and related server hardware, then lease the equipment to SpaceX. The leases will last about five to five-and-a-quarter years, beginning when each tranche of equipment is delivered, according to the filing.<\/p>\n

SpaceX expects the deal to close by year-end, subject to closing conditions, with leases starting in the first half of 2027 as the GPUs and related equipment arrive.<\/p>\n

The financing gives SpaceX another way to fund its rapidly expanding AI ambitions without relying solely on traditional debt markets. <\/p>\n

\u201cThis lease diversifies our funding sources and addresses a notable portion of the funding required to deliver on our growth plans,\u201d SpaceX CFO Bret Johnsen said<\/a> in a statement Monday, noting it is seeing \u201cless than one-year payback periods\u201d on its AI infrastructure investments as it scales compute to power Grok and its cloud services.<\/p>\n

Apollo said the financing will help deliver Nvidia\u2019s next-generation Vera Rubin chips for SpaceX\u2019s \u201cterrestrial compute buildout.\u201d <\/p>\n

The financing comes as SpaceX ramps spending to expand its AI infrastructure, alongside its Starlink and launch businesses. <\/p>\n

The financing follows a\u00a0blockbuster third quarter for SpaceX\u2019s AI business<\/a>. SpaceX\u2019s AI segment, which includes the Grok chatbot, the Cursor coding tool, and its cloud compute business,\u00a0outperformed investor expectations\u00a0in the third quarter and brought in\u00a0$7.6 billion<\/a>\u00a0of SpaceX\u2019s $14.6 billion in revenue, more than Starlink and rocket launches combined.<\/p>\n

Capital expenditures also surged to nearly $20 billion, up from $6.9 billion a year earlier, as SpaceX races to expand its compute footprint. CFO Bret Johnsen said on the company\u2019s\u00a0October 20 earnings call<\/a>\u00a0that SpaceX expects to spend $35 billion to $40 billion in the fourth quarter alone.<\/p>\n

The massive lease comes after a tumultuous stretch<\/a> in the debt markets for AI infrastructure players, as investors grow squeamish over runaway capital expenditures and limited profits.<\/p>\n

While SpaceX had no trouble tapping Wall Street, Musk used the $40 billion announcement to take a victory lap over pure-play AI compute rivals. <\/p>\n

Pointing to SpaceX\u2019s \u201cinvestment-grade\u201d status and steady cash flow from Starlink and rocket launches, Musk argued<\/a> on Sunday that debt markets have largely closed the door on companies without major revenue streams outside of AI data centers \u2014 spelling trouble for the more than 200 neocloud companies built solely to rent out GPUs for AI workloads.<\/p>\n

\u201cThat means the 200+ neoclouds are going to see guppy-level death and consolidation,\u201d Musk wrote on X<\/a>. \u201cSome will make it through, but not many.\u201d<\/p>\n

When you purchase through links in our articles, we may earn a small commission<\/a>. This doesn\u2019t affect our editorial independence.<\/p>\n","protected":false},"excerpt":{"rendered":"SpaceX has reached a binding commitment for roughly $40 billion in financing for AI chips and related data…\n","protected":false},"author":2,"featured_media":947341,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[49,48,66,306],"class_list":["post-947340","post","type-post","status-publish","format-standard","has-post-thumbnail","category-space","tag-ca","tag-canada","tag-science","tag-space"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/947340","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=947340"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/947340\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/947341"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=947340"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=947340"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=947340"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}