Nvidia hits record $5.65 trillion as SpaceX seeks $40 billion to buy its AI chips
Nvidia has surpassed its previous all-time high from May as companies race to secure the computing power needed to expand artificial intelligence.
Nvidia has reached a new all-time high market capitalization of $5.65 trillion, eclipsing the previous record it set in May, as investors continue to bet on the enormous spending required to build out artificial intelligence infrastructure.
The new record comes as the scale of that spending is becoming increasingly clear. SpaceX is reportedly seeking to raise $40 billion, led by Apollo Global Management, largely to purchase Nvidia AI chips.
The Elon Musk-led company is looking to raise about $10 billion in bank loans and another $30 billion in investment-grade debt for the chip order, the Financial Times reported on Tuesday, citing people familiar with the matter. The transaction is expected to close in 2027.
The reported SpaceX financing offers a striking example of the capital required to support the AI boom. That spending is a major reason Nvidia has become the biggest financial beneficiary of the AI infrastructure boom. The company is the dominant supplier of AI processors, and its chips have become a critical component of the data centers being built to support the industry's expansion.
SpaceX's plan would involve a substantial amount of debt. Apollo is expected to lead the deal and help place the debt with a broad range of investors. Bond fund Pimco is among a small group of lenders reportedly in talks to provide financing. SpaceX, Apollo and Nvidia did not immediately respond to Reuters requests for comment, while Pimco declined to comment.
The financing comes only months after SpaceX went public in June through a record $86 billion IPO. The company is now reportedly preparing another major capital raise as Musk expands his ambitions in AI.
Musk said last month that xAI's Colossus 2 data center could more than double the number of Nvidia chips it uses by December. SpaceX has also said it plans to use Nvidia hardware exclusively to build its data centers.
Morgan Stanley estimates that AI infrastructure will require $1.5 trillion in external financing by 2028, even as lenders and investors become more cautious about funding the industry's expansion.
Nvidia has increasingly moved into that financing ecosystem itself. In August, it partnered with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR on financing platforms intended to mobilize more than $500 billion in third-party capital for AI infrastructure.
