Nvidia Hits $5.65T Record as SpaceX Seeks $40B for AI Chips
Nvidia has achieved a record market capitalization of $5.65 trillion, surpassing the prior high it established in May, as investors persist in wagering on the significant investment needed to develop artificial intelligence infrastructure.
The new record emerges as the magnitude of that expenditure becomes more apparent. SpaceX is said to be aiming to secure $40 billion, spearheaded by Apollo Global Management, primarily to acquire Nvidia AI chips.
The company headed by Elon Musk is seeking to secure approximately $10 billion in bank loans and an additional $30 billion in investment-grade debt for the chip order, the Financial Times mentioned on Tuesday, referencing sources familiar with the situation. The deal is anticipated to finalize in 2027.
The disclosed SpaceX funding provides a notable illustration of the resources needed to sustain the AI surge. That expenditure is a primary factor in Nvidia becoming the largest financial winner from the AI infrastructure surge.
The firm is the leading provider of AI processors, and its chips have turned into an essential part of the data centers being constructed to aid the sector's growth.
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SpaceX's strategy would entail a significant level of borrowing. Apollo is anticipated to spearhead the transaction and assist in securing the debt with a wide array of investors. Bond fund Pimco is part of a limited number of lenders said to be negotiating for funding.
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The funding arrives just months after SpaceX debuted in June with a historic $86 billion IPO. The company is said to be planning another significant capital raise as Musk broadens his aspirations in AI.
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Musk mentioned last month that xAI's Colossus 2 data center might more than double its usage of Nvidia chips by December. SpaceX has announced it intends to utilize Nvidia hardware solely for the construction of its data centers.