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Elon Musk’s SpaceX (NASDAQ:<\/a>SPCX<\/a>) signed a roughly $40 billion chip-financing commitment with Apollo Global Management Inc. (NYSE:<\/a>APO<\/a>) as AI debt-market concerns drive up borrowing costs. <\/p>\n Musk said in a Sunday post on X<\/a> that SpaceX had already closed the $40 billion financing deal, although Monday’s filing disclosed only a binding commitment, with final pricing and closing still pending. <\/p>\n An Apollo-managed entity would buy equipment, including Nvidia Corp. (NASDAQ:<\/a>NVDA<\/a>) chips, and lease it to SpaceX for about five years. The interest rate remains undetermined, and closing is expected by year-end. <\/p>\n SpaceX’s Expensive AI Expansion <\/p>\n SpaceX’s Super Intelligence division, including Grok and cloud computing services, generated $7.56 billion in third-quarter revenue, up 830% year over year. <\/p>\n However, its quarterly capital spending hit $16.44 billion, more than twice revenue. The division reported a $431 million operating profit. <\/p>\n The separate leasing structure is intended to keep borrowing off SpaceX’s balance sheet and protect its investment-grade rating, Bloomberg reported<\/a>. The eventual accounting treatment remains uncertain. <\/p>\n AI Debt Markets Under Pressure <\/p>\n The most expensive portion of the financing could cost up to 8.75%, Semafor reported<\/a> Monday, compared with 6.65% on SpaceX’s priciest bonds issued in June. The instruments differ, but the figures underscore rising financing costs. <\/p>\n CoreWeave Inc. (NASDAQ:<\/a>CRWV<\/a>) has also come under pressure. Its bonds issued in June at a 9.675% yield were yielding roughly 15% by mid-October, Reuters reported. <\/p>\n Morgan Stanley analyst Adam Jonas estimates SpaceX could issue another $230 billion in debt between 2027 and 2029 to finance its expansion. <\/p>\n