SpaceX Closes $40 Billion Apollo Deal to Buy AI Chips for Its Data Centres

SpaceX Closes $40 Billion Apollo Deal to Buy AI Chips for Its Data Centres

Elon Musk's SpaceX said on Monday it has reached a $40 billion financing agreement with an entity managed by Apollo Global Management to buy graphics processing units and related equipment for its data centres. Under the deal, the Apollo-managed entity will purchase the AI chips and server hardware and lease them to SpaceX, which will make quarterly payments over leases running a little more than five years each.

SpaceX expects total principal payments under the leases to reach about $40 billion, excluding interest and other costs. Equipment will arrive in instalments, with the first leases expected to begin in the first half of 2027, and the company aims to finalise the master finance lease before the end of the year. Musk said on Sunday on X that SpaceX had closed the debt financing for graphics processing units, adding that it mainly covers chips arriving in the first two quarters.

The deal underlines the enormous cost of the AI build-out, as companies race to secure advanced processors to power data centres. SpaceX still expects fourth-quarter capital spending of $35 billion to $40 billion, and the computing power is meant to help bankroll its Moon and Mars ambitions. Reports earlier this month said the funding would go largely to Nvidia chips, as Musk plans to more than double the chip count at xAI's Colossus 2 data centre by December.

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