SpaceX shares fell nearly 2% in premarket trading on Wednesday after the company was reported to be seeking $40 billion in financing to buy Nvidia artificial intelligence chips, highlighting the growing cost of its AI expansion.

The proposed SpaceX $40 billion financing would comprise about $10 billion in bank loans and $30 billion in investment-grade debt, according to the Financial Times, which cited people familiar with the matter. Apollo Global Management is expected to lead the financing and help place the debt with investors.

The transaction is expected to close in 2027, the Financial Times reported.

Pimco is among a small group of lenders that has held discussions about participating in the financing, according to the report. Pimco declined to comment, while SpaceX, Apollo and Nvidia did not immediately respond to requests for comment cited by Reuters.

The report sent SpaceX shares down about 1.9% in premarket trading. The stock had closed at about $172 on Tuesday. Nvidia shares, meanwhile, gained after the report.

The proposed borrowing comes as SpaceX increases spending on artificial intelligence infrastructure, adding substantial capital requirements to its existing rocket, satellite and communications businesses.

SpaceX Expands AI Infrastructure

Chief Executive Elon Musk has increasingly positioned artificial intelligence as an important part of SpaceX’s growth strategy.

Musk said last month that the Colossus 2 data centre operated by his AI company xAI could more than double its number of Nvidia chips by December. He has also said SpaceX plans to use Nvidia hardware exclusively to build its data centres.

The proposed purchase would therefore deepen SpaceX’s reliance on Nvidia’s processors as it expands computing capacity for AI-related operations.

Nvidia has become a central supplier to the rapidly expanding AI infrastructure industry, with technology companies and AI developers investing heavily in data centres, processors and supporting power infrastructure.

Morgan Stanley estimates that AI infrastructure will require about $1.5 trillion in external financing by 2028, reflecting the scale of capital required to expand computing capacity.

The SpaceX financing would add to a series of large capital-raising transactions linked to the AI infrastructure boom.

In August, Nvidia partnered with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR on financing platforms intended to mobilise more than $500 billion for AI infrastructure projects, according to Reuters.

Capital Spending Under Scrutiny

The proposed SpaceX $40 billion financing also comes after the company made significant investments in infrastructure during the first half of the year.

SpaceX’s first-half capital spending was reported at about $28.5 billion, compared with roughly $3.5 billion in operating cash generation, according to figures cited in recent market reports. The scale of investment has increased as the company develops AI computing capacity alongside its traditional space and satellite operations.

The company has previously indicated that it expects substantial spending on growth initiatives.

SpaceX’s June 2026 IPO raised about $85.7 billion in net proceeds, according to the company’s filings with the U.S. Securities and Exchange Commission. The company sold 638.9 million Class A shares at $135 each, including the underwriters’ overallotment option.

The company said proceeds from the IPO would support growth initiatives including expansion of AI computing infrastructure, launch infrastructure and vehicles, and increased satellite constellation capacity.

SpaceX also raised $25 billion through an inaugural investment-grade senior notes offering in June. Its SEC filing shows the notes were issued in five tranches with maturities ranging from 2031 to 2056 and interest rates between 5.35% and 6.65%.

The additional debt being discussed would therefore come only months after the company’s IPO and initial bond offering.

Investors Weigh AI Ambitions & Borrowing

For investors, the proposed financing adds another consideration to the valuation of SpaceX, which became publicly traded this year.

SpaceX began trading on Nasdaq under the ticker SPCX in June after pricing its IPO at $135 per share. The company raised approximately $85.7 billion after expenses, making the offering one of the largest public equity raises on record.

The company has sought to use the public-market access to fund expansion across several businesses, including AI computing, satellite networks and launch infrastructure.

The latest financing proposal illustrates the capital-intensive nature of building AI infrastructure. Companies need large quantities of advanced processors as well as data centres, electricity, networking equipment and other supporting infrastructure.

The deal also remains subject to negotiations and could change before completion.

For now, investors are watching whether SpaceX can translate its rapidly expanding AI infrastructure spending into revenue and cash generation while continuing to fund its space and satellite businesses.