Apollo Capital Management and several banks are in discussions with SpaceX to help facilitate the company's purchase of $40 billion worth of Nvidia graphics processing units, according to a person familiar with the talks who asked not to be named to discuss the matter.
The deal will primarily rely on the investment-grade debt market, which SpaceX just tapped four months ago, the person said.
Two weeks after its record-breaking IPO in mid-June, the space exploration company raised $25 billion in bonds at different durations. CNBC was told at the time that SpaceX's bond sale saw incredibly high demand, highlighting strong interest from fixed-income investors.
But since then, AI-related bonds have sold off, while credit spreads have widened.
SpaceX's $40 billion debt deal will likely use GPUs as collateral and Apollo Capital is said to be playing a leading role in facilitating the financing, the person said.