SpaceX reportedly lining up $40B in debt for Nvidia chips

What happened: The Financial Times reported Tuesday that SpaceX is arranging roughly $40 billion of debt, about $10 billion in bank loans and $30 billion in investment-grade bonds, organized by Apollo with PIMCO among firms in talks, to buy Nvidia chips for AI data centers. It may not close until 2027. Reuters reports SpaceX plans to use Nvidia chips exclusively in future data centers; SpaceX shares fell 1% and Nvidia rose half a percent in extended trading. Morgan Stanley estimates AI infrastructure needs about $1.5 trillion of outside financing by 2028.
The claim: Elon Musk has said xAI's Colossus 2 data center could double its Nvidia chips by December.
Austin's take: Austin is enthusiastic, reading big lenders' backing as a signal there is something real here. He frames it as a bet on the infrastructure layer of the AI stack, but flags the Cisco precedent: it overbuilt during the internet buildout and took about 20 to 25 years to recover its stock price. He thinks demand looks real for now.
Why it matters: AI is increasingly built on borrowed money, like railroads and power plants. Debt gets paid back whether or not the AI pays off.
What to do: If you hold Nvidia, SpaceX or AI infrastructure exposure, note how much of the buildout now rests on debt, and keep an eye on whether the deal actually closes.
Not confirmed yet: The deal is reported, not confirmed, and may not close until 2027.

The Loop