SpaceX has disclosed a binding commitment for roughly $40 billion in financing directed toward AI chips and data center hardware.
Managed via an Apollo Global Management entity, the hardware lease agreement aims to fund terrestrial compute expansion.
The deal was revealed in a filing Monday, with SpaceX saying it was the largest financing of its kind ever for equipment.
How the deal works
A company run by Apollo Global Management will buy the chips and related equipment for the computers and then lease them to SpaceX.
The leases will last from five to five years and three months, starting as soon as each batch of equipment is delivered. The deal is expected to be completed by the end of the year, with leases starting in the first half of 2027.
SpaceX CFO Brett Johnson said the lease helps the company find diverse sources of financing and covers a large portion of its needs for its growth plans. He also noted that investments in artificial intelligence infrastructure take less than a year to pay off.
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Apollo said the funding will help procure Nvidia's new Vera Rubin chips, which will be used for SpaceX's ground computing infrastructure.
The revenues and the huge expenses
SpaceX's artificial intelligence division brought in $7,6 billion in revenue out of the company's $14,6 billion in third-quarter revenue, surpassing revenue from Starlink and rockets combined.
At the same time, the company's capital expenditures rose to nearly $20 billion, up from $6,9 billion a year earlier. Brett Johnson said in an earnings call on Oct. 20 that SpaceX expects to spend $35 billion to $40 billion in the fourth quarter alone.
What Elon Musk says about the market
On the occasion of the $40 billion deal, Elon Musk commented on the X platform that debt markets have closed the door to companies that do not have significant revenues beyond artificial intelligence data centers.
Musk wrote that more than 200 startups created solely to rent chips will be led to failure and mergers.
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