SpaceX's $40 Billion Chip Bill Lands on Wall Street

SpaceX (SPCX) is working with Goldman Sachs (GS) and Apollo Global Management (APO) to sell parts of its roughly $40 billion chip financing deal to other investors. Bloomberg reported that some investors are being asked to buy portions worth as much as $500 million before formal syndication begins.

The financing is structured to keep the debt off SpaceX's balance sheet. It will help fund about $47.3 billion in GPU equipment, including Nvidia's (NVDA) latest Rubin chips, expected to arrive in the first half of 2027.

How SpaceX's $40 Billion Chip Financing Works

An Apollo-backed company called Atlas SP will buy the chips and lease them to SpaceX. Atlas SP will raise money through loans and bonds to pay for the equipment.

SpaceX will then pay rent to use the chips under a lease lasting about five years. Goldman arranged an $8.3 billion senior-secured loan, while Apollo backed the bond portion. Other investors also participated in the deal.

The lease requires SpaceX to keep paying rent even if the equipment is damaged or certain unexpected events occur. It also does not guarantee the chips' value when the lease ends.

Investors Grow Cautious About AI Debt

The financing comes as investors question whether AI companies can earn enough to cover their heavy spending. Many firms are borrowing to build data centers and buy computing equipment.

CoreWeave (CRWV) has also faced funding concerns, adding to worries about debt across the AI infrastructure sector. Rising power costs and approval rules have created further challenges for data-center projects. Recent U.S. election results have also increased attention on these issues.

SpaceX is expanding its computing capacity through facilities in Memphis and planned sites in Mississippi. Its growing AI operations will require substantial spending, making the ability to meet long-term lease payments important.

Is SPCX Stock a Good Buy?

Analysts have a Strong Buy consensus rating on SPCX stock based on 29 Buys, five Holds, and one Sell assigned in the past three months. The average SPCX price target of $250.34 per share implies 84% upside potential. (See SPCX stock forecast).

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