SpaceX signed a financing lease teams for about US$40,000 million with Apollo Global Management Inc. to pay for the chips it needs to fuel its artificial intelligence ambitions.
The fixed rate the company will pay will be determined when the transaction price is set, which has not yet occurred, he said. SpaceX in a regulatory filing on Monday. The deal is expected to close before the end of the year, with leasing to begin in the first half of next year.
Elon Musk highlighted the agreement over the weekend in a post on x as a way to help finance the purchase of graphics processing units Nvidia Corp.
“This leasing diversifies our financing sources and covers an important part of the funds necessary to meet our growth plans,” he said. SpaceX in a statement on Monday, adding that it is seeing “payback periods of less than a year” on its AI investments.
The agreement comes after a turbulent week for AI companies in debt markets, amid growing concerns about the sector’s sharp increase in spending and the meager profits made so far. The volatility complicated negotiations over the price of debt SpaceXas investors demand ever-increasing premiums to finance the expansion of AI infrastructure. The operation is being structured as private bonds that will be issued by an out-of-balance entity.
Much of investor concern has focused on so-called neoclouds, which sell high-end computing capacity to technology companies. Musk has tried to differentiate his company from those companies, highlighting the income that SpaceX you get from your business starlink and rocket launches.
SpaceXwhich is rated investment grade by the three major rating agencies, has seen the price of its own debt fall in recent weeks. Credit default swaps linked to the company, used to protect against losses on its debt, soared last week to a record 266 basis points at Friday’s close, a level more common among speculative-rated borrowers. That concern diminished slightly in the first operations on Monday, when the currency swaps SpaceX were trading around 261 basis points, according to stock prices. ICE Data Services.
Goldman Sachs Group Inc. acted as the sole structuring agent of the operation, according to the statement. Funds and accounts managed by BlackRock Inc. and Goldman Sachs Asset Managementt, as well as capital accounts advised by KKR & Co.also assumed commitments as anchor investors.
