Apollo, banks in talks to finance SpaceX's $40 billion Nvidia GPU purchase

TechPublished Wed, Oct 7 202612:32 PM EDTKey PointsApollo Capital and several banks are in talks with SpaceX to facilitate the $40 billion purchase of Nvidia GPUs, a source told CNBC.The deal will primarily rely on the investment-grade debt market.Discussions are preliminary and details have yet to be finalized, including key lenders.Apollo Capital Management and several banks are in discussions with SpaceX to help facilitate the company's purchase of $40 billion worth of Nvidia graphics processing units, according to a person familiar with the talks who asked not to be named to discuss the matter.The deal will primarily rely on the investment-grade debt market, which SpaceX just tapped four months ago, the person said. Two weeks after its record-breaking IPO in mid-June, the space exploration company raised $25 billion in bonds at different durations. CNBC was told at the time that SpaceX's bond sale saw incredibly high demand, highlighting strong interest from fixed-income investors. But since then, AI-related bonds have sold off, while credit spreads have widened.SpaceX's $40 billion debt deal will likely use GPUs as collateral and Apollo Capital is said to be playing a leading ...