Goldman Sachs and Apollo move to sell portions of $40 billion SpaceX debt

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Goldman and Apollo seek investors for SpaceX

Highlights

Goldman Sachs and Apollo seek buyers for $40 billion in SpaceX AI debt.
The deal includes an $8.3 billion loan and several bond tranches.
AI spending concerns could complicate the debt sale.

The firms have begun discussions with potential buyers ahead of a formal debt syndication, according to Bloomberg. Some investors are being offered commitments of up to $500 million to accelerate the transaction. The financing was announced in October, before the latest market volatility.

Goldman and Apollo prepare major debt sale

The package is designed to finance Nvidia graphics processing units without placing the associated debt directly on SpaceX's balance sheet. Apollo-backed Atlas SP will manage a special purpose vehicle that purchases the equipment and issues debt to investors.

SpaceX will lease the chips under a five-year agreement. Its rental payments remain mandatory regardless of equipment damage or other disruptions. The company is not providing a guarantee covering the chips' residual value.

The financing includes an $8.3 billion senior secured loan intended for bank investors. Additional bond tranches will be marketed to asset managers. Goldman Sachs led the loan component, while Apollo played a central role in the bond financing. Pacific Investment Management also participated.

AI investment concerns complicate syndication

The planned sale comes during a difficult period for companies financing large computing projects. Investors have become increasingly concerned about whether future AI revenue can justify substantial spending on processors and data centers.

The Democratic takeover of Congress has added political uncertainty. Data center development became an election issue in several states, including Texas, where concerns about infrastructure and electricity demand influenced the debate.

Market pressure has also affected AI infrastructure companies such as CoreWeave. SpaceX and Tesla shares declined following the election results, reflecting broader weakness in technology-related investments.

SpaceX currently operates data centers in Memphis, Tennessee, and is developing additional facilities in Mississippi. The financing will support its expanding computing requirements.

Chip financing tests investor appetite

The $40 billion debt package will be combined with a $7 billion lease prepayment to fund approximately $47.3 billion of GPU equipment. The purchases primarily involve Nvidia's next-generation Rubin processors, scheduled for delivery during the first half of 2027.

The structure allows SpaceX to obtain computing equipment while limiting the direct effect of the borrowing on its corporate credit profile. Investors, however, must assess the risks associated with the equipment and the financing vehicle.

For Goldman Sachs and Apollo, completing the syndication will test demand for large AI-backed debt transactions. The outcome could influence how similar infrastructure projects are financed as investors reassess the sector's long-term returns.

As we previously reported, Goldman Sachs adds Deutsche Bank and Carlsberg to Europe stock picks.

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