Goldman Sachs and Apollo market debt for SpaceX's $40 billion AI chip financing
Goldman Sachs and Apollo Global Management have begun approaching Wall Street investors to sell portions of a roughly $40 billion debt package backing SpaceX's purchase and lease of Nvidia artificial intelligence chips.
Goldman Sachs Group Inc. and Apollo Global Management Inc. are in discussions with Wall Street investors to sell portions of a roughly $40 billion chip financing deal for SpaceX, according to Bloomberg. The package, originally announced in October, stands as the largest GPU financing arrangement of its kind on record. The two firms have begun pitching prospective buyers ahead of formal syndication, offering some investors tranches of up to $500 million.[1][2][3][4][5]
Under the transaction structure, a special purpose vehicle managed by Apollo-backed Atlas SP will purchase approximately $47.3 billion worth of Nvidia hardware, primarily next-generation Rubin graphics processors. The procurement is funded through approximately $40 billion in debt alongside a $7 billion lease prepayment from SpaceX. The chips are scheduled for delivery during the first half of 2027.[5]
SpaceX will lease the hardware for approximately five years under an off-balance-sheet structure intended to safeguard its corporate credit ratings. Its rental obligations remain unconditional even in the event of equipment damage or operational disruptions, though SpaceX does not guarantee the chips' residual value at lease expiration. Marketing materials outline an $8.3 billion senior-secured loan tranche alongside three bond tranches totaling $31.9 billion.[5]
Key facts
- Goldman Sachs and Apollo Global Management are approaching investors to sell pieces of an approximately $40 billion chip financing deal for SpaceX.
- Some institutional investors are being offered debt allocations of up to $500 million before formal syndication begins.
- An entity managed by Apollo-backed Atlas SP will acquire about $47.3 billion of Nvidia GPUs and equipment, mainly next-generation Rubin chips.
- The purchase is funded by roughly $40 billion in debt and a $7 billion lease prepayment from SpaceX.
- The debt structure includes an $8.3 billion loan tranche and three bond tranches of $4 billion, $23.2 billion, and $4.7 billion.
- SpaceX will lease the equipment for roughly five years with unconditional payment terms, and chip deliveries are expected in the first half of 2027.
Sources · 5 sources
- TE
Techmeme@TechmemePost on X ·
Sources: Goldman Sachs and Apollo are in talks with investors to sell portions of SpaceX's ~$40B chip financing, asking some for up to $500M before syndication (@arroyonieto / Bloomberg) (Visit Techmeme dot com for the link and full context!)
Open source - AG
AGTP@AGTPinsightsPost on X ·
BREAKING: Goldman Sachs and Apollo are in talks to start selling portions of SpaceX's roughly $40 billion chip financing deal, the largest GPU financing arrangement of its kind on record. https://t.co/w9LS3QLaAU
Open source - BL
Bloomberg@businessPost on X ·
Goldman and Apollo are in talks with Wall Street investors to start selling portions of a roughly $40 billion chip financing deal for SpaceX, just as the AI boom braces for upheaval following a sweeping Democratic victory https://t.co/UIqZ8eijp9
Open source - TE
TechmemeArticle ·
Sources: Goldman Sachs and Apollo are in talks with investors to sell portions of SpaceX's ~$40B chip financing, asking some for up to $500M before syndication (Carmen Arroyo/Bloomberg) Carmen Arroyo / Bloomberg : Sources: Goldman Sachs and Apollo are in talks with investors to sell portions of SpaceX's ~$40B chip financing, asking some for up to $500M before syndication — Goldman Sachs Group Inc. and Apollo Global Management Inc. are in talks with Wall Street investors to start selling portions …
Open source - WS
Wall St Engine@wallstenginePost on X ·
Goldman Sachs $GS and Apollo $APO are approaching Wall Street investors to sell portions of SpaceX $SPCX's roughly $40B AI chip financing deal. The two firms have begun marketing the financing to potential buyers, with some investors being offered portions worth as much as $500M ahead of the formal syndication process, which is expected to begin soon. The financing, announced in October, is the largest GPU financing arrangement on record. Here's how the deal is structured: An Apollo-backed entity will purchase approximately $47.3B worth of Nvidia GPUs and related equipment, primarily its next-generation Rubin chips. The purchases will be financed through roughly $40B in debt, alongside a $7B lease prepayment from SpaceX. SpaceX will then lease the chips for approximately five years, using a structure designed to keep the financing debt off its own balance sheet and protect its credit ratings. The debt package includes an $8.3B senior-secured loan, alongside multiple bond tranches being marketed to institutional investors. The Nvidia chips are expected to be delivered in the first half of 2027. One interesting detail is that SpaceX's rental obligations remain unconditional. The company must continue making payments even if the equipment is damaged or extraordinary events disrupt operations. SpaceX also isn't providing a guarantee covering the chips' residual value at the end of the lease. Source: Bloomberg
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