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SpaceX signs $40 billion GPU lease deal with Apollo

Illustration: an orange channel labeled "$40B" runs straight out of a SpaceX ledger sheet into a large GPU chip module.

SpaceX has signed a binding commitment to lease graphics processing unit hardware from an entity managed by Apollo Global Management, in a deal the company expects to total about $40 billion in principal payments, according to a regulatory filing on Monday. Reuters reported the filing Monday.

What the filing says

According to the filing, SpaceX entered into the commitment letter on October 24. Under the planned master finance lease, the Apollo-managed entity will acquire and lease to SpaceX “certain graphics processing unit pods and related equipment” for use at data centers selected by the company.

The equipment will be delivered in tranches, each with a lease term of about five to five and one-quarter years. Rent will be paid quarterly in advance and will generally consist of one-twentieth of each tranche’s financed cost plus an amount at a fixed annual rate on the outstanding balance and certain costs, according to the filing. The rate will be set at pricing before SpaceX enters the master lease. The deal is subject to closing conditions and is expected to close before year end, with the leases starting in the first half of 2027 as the GPUs are delivered.

The filing does not name the chipmaker. Reuters reported earlier this month that SpaceX was in talks with banks and asset managers to raise $40 billion for Nvidia AI chips. AI Tech Daily reported on the talks earlier this month.

Musk on neoclouds

Elon Musk previewed the deal on Sunday. “SpaceX closed $40B of debt for GPUs, but we’re investment grade and have Starlink & launch revenue,” he wrote in a post on X. The filing describes a commitment that is expected to close before year end. It was not immediately clear from Musk’s post what he meant by the deal being “closed,” Reuters reported.

In the same post, Musk said debt markets “have almost entirely shut off access to money for any company that doesn’t have substantial revenue independent of AI data centers,” and predicted “guppy-level death and consolidation” for “the 200+ neoclouds.” Neoclouds rent out computing capacity built for AI. Reuters named Nebius and CoreWeave as examples. In a later post, Musk wrote, “SpaceX is not buying any neoclouds. Pointless.”

Spending context

The commitment is large even against SpaceX’s current spending. Chief financial officer Bret Johnsen has said the company expects $35 billion to $40 billion in capital expenditure for the fourth quarter, according to Reuters. SpaceX’s AI segment posted third-quarter revenue of $7.56 billion, up from $813 million a year earlier, CNBC reported.

Sources

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