SpaceX Secures $40 Billion to Purchase AI Chips via Apollo

SpaceX reached a binding commitment for financing of around $40 billion to purchase AI chips and associated data center equipment, according to a regulatory disclosure reported by TechCrunch on Monday.

Under the agreement, an entity managed by Apollo Asset Management will purchase the chips and server equipment and then lease them to SpaceX. Each lease tranche spans approximately five to five and a quarter years, starting from equipment delivery.

SpaceX expects to close the deal before the end of the year, with leases commencing in the first half of 2027 upon the arrival of Nvidia's next-generation "Vera Rubin" chips and other equipment.

The company plans to spend between $35 billion and $40 billion in the fourth quarter alone, after its capital expenditures surged to around $20 billion from $6.9 billion a year earlier, as its cloud computing and AI businesses expand.

What Do These Terms Mean?

Binding Commitment: A legally enforceable obligation to finance the transaction, rather than a mere intention or preliminary agreement.

Lease Contract: An agreement under which a lessee makes periodic payments to use an asset owned by another party, rather than purchasing it in cash.

Capital Expenditures: Funds spent by a company on long-term assets such as equipment and technical centers.

Vera Rubin: A new generation of Nvidia chips dedicated to accelerated computing in AI applications.