SpaceX locks in $40B GPU financing deal with Apollo

SpaceX has secured a binding $40 billion financing agreement managed by Apollo Global Management to acquire AI chips and data center hardware.

• Apollo will purchase the server equipment and lease it to SpaceX for terms lasting slightly over five years.
• The transaction is anticipated to close by the end of the year, with lease terms commencing in the first half of 2027.
• SpaceX's AI division generated $7.6 billion out of the company's $14.6 billion total revenue in the third quarter.
• CFO Bret Johnsen highlighted that investments in AI infrastructure boast payback periods of under one year.
• Elon Musk noted that traditional debt markets are becoming inaccessible for companies whose sole focus is renting out AI compute.

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