SpaceX reportedly seeking $40 billion debt package for Nvidia AI hardware

SpaceX is reportedly looking to raise $40 billion to acquire Nvidia AI processors in a bid to expand its compute capabilities, reports the Financial Times. The financing could combine $10 billion in bank loans with $30 billion in investment-grade debt and may be completed in 2027, though discussions are still at an early stage and there is no guarantee that a transaction will materialize. If it does, then SpaceX's xAI will get $40 billion worth of Nvidia Rubin generation hardware, which includes AI accelerators.

Although Bloomberg reports that the proposed financing would be used specifically to purchase Nvidia AI accelerators, since xAI has traditionally bought servers or rack-scale AI solutions from Nvidia and its partners, it is likely that the company will continue to do so rather than opt to get accelerators and then build AI servers itself. …