SpaceX reportedly plans to borrow $40 billion for Nvidia chips as it expands its data centers. The added computing capacity could help, but the debt and lack of stated returns leave the company's outlook mixed.
This could expand SpaceX's computing capacity, especially since Musk said it plans to use Nvidia hardware exclusively. But the purchase would rely on $40 billion in borrowing, and the deal is not expected to close until 2027. The story gives no estimate of what the expansion could earn, so the growth opportunity and added debt leave SpaceX's outlook mixed.
SpaceX is reportedly planning a large Nvidia chip purchase for its data centers. That could bring Nvidia more sales, though the financing is still being arranged and the deal is expected in 2027.
Apollo is expected to lead the reported financing and help place the debt with investors, which could bring it deal business. The transaction is expected to close in 2027, so that work is not complete.
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