SpaceX is arranging one of the largest financing transactions tied to artificial intelligence infrastructure as it expands its computing capabilities alongside its space operations. An affiliate of Apollo Global Management will purchase AI chips and server hardware and lease the equipment to SpaceX, with the agreement carrying approximately $40 billion in total principal payments.

Apollo Structure Links AI Hardware to Long-Term Financing

Under the agreement, Apollo’s affiliate will acquire the computing equipment and lease it to SpaceX. According to a regulatory filing, each lease will run for slightly more than five years from the date the equipment arrives, creating a long-term financing structure for the costly hardware required to expand SpaceX’s AI capabilities.

SpaceX aims to finalize the transaction by the end of the year, with the leases expected to begin during the first half of 2027 once the chips have been delivered. The structure allows SpaceX to secure access to large quantities of computing infrastructure without purchasing all of the equipment directly at the outset, although it creates substantial future lease obligations.

AI Spending Adds to SpaceX’s Capital Requirements

The transaction highlights the scale of SpaceX’s spending as demand for computing power increases. The company is seeking to capitalize on AI-related demand while simultaneously pursuing ambitious space projects, including its longer-term Moon and Mars ambitions.

SpaceX Chief Financial Officer Bret Johnsen has said the company still expects fourth-quarter capital expenditure of $35 billion to $40 billion. The level of planned spending illustrates the capital intensity of SpaceX’s expansion and the growing importance of financing structures capable of supporting major infrastructure commitments.

GPU Financing Becomes a Strategic Priority

CEO Elon Musk said on Sunday that SpaceX had closed $40 billion in debt financing for graphics processing units. Musk indicated that the financing was mainly aimed at chips expected to arrive during the first and second quarters and would not be a major factor in the company’s current-quarter financial performance.

Reuters had previously reported that SpaceX was in discussions with banks and asset managers to raise $40 billion to purchase Nvidia chips. The latest Apollo transaction provides further evidence of the company’s effort to secure computing capacity through institutional financing as AI infrastructure becomes increasingly capital intensive.

SpaceX Faces a Complex Capital Allocation Test

The financing arrangement gives SpaceX access to substantial AI hardware while spreading the associated payments over multiple years. However, the scale of the commitments also increases the importance of future cash generation from the company’s expanding businesses and the effective utilization of the computing infrastructure.

Investors and financing markets will be watching the final terms of the Apollo agreement, the timing of equipment deliveries and SpaceX’s broader capital expenditure plans. The company’s ability to balance AI infrastructure investment with its space ambitions will remain a key factor as it seeks to turn growing demand for computing power into a source of funding for increasingly expensive long-term projects.