Goldman Sachs and Apollo in Talks to Sell 40 Billion-Dollar AI Chip Financing for SpaceX (SPCX.US), Market's Willingness to Take Over Faces Test

According to Jinse Finance, Goldman Sachs (GS.US) and Apollo Global Management (APO.US) are in discussions with Wall Street investors to begin selling part of a $40 billion chip financing deal for SpaceX (SPCX.US). Meanwhile, following a landslide victory by the Democratic Party, AI-related deals are facing turbulence.

Sources indicate that both companies have begun approaching potential buyers for the multi-tranche financing. SpaceX has stated that the deal structure is designed to keep the debt off SpaceX’s balance sheet and is the largest recorded GPU financing arrangement to date.

Insiders report that in some cases, investors are being asked to purchase stakes of up to $500 million before the official syndicate distribution process begins, in order to expedite completion of the deal. The debt syndication plan is set to launch soon.

Political Upheaval Puts AI Deals to the Test

Elon Musk’s rocket, satellite, and AI company SpaceX announced this financing deal in October, with investors agreeing to the package before pricing was set.

This leaves lenders exposed to market risk during periods of volatility. Investors have pulled back from AI-related deals, questioning whether future revenues will justify the extraordinary expenditures; this sentiment has made lenders cautious toward some of SpaceX’s new cloud services competitors, including CoreWeave (CRWV.US).

The Democratic Party’s control of Congress after the midterm elections has further intensified these pressures. Democrats won the election by leveraging voter concerns over rising living costs and the Iranian conflict. Data centers have also become a fierce electoral focus, particularly in Texas—which flipped blue just months after freezing new project approvals.

With the political landscape shifting overnight, markets reacted sharply, sending the share prices of SpaceX and Tesla (TSLA.US) lower. SpaceX’s data center is located in Memphis, Tennessee, and the company is developing additional sites in Mississippi.

Off-Balance-Sheet Debt, But Lease Obligations Remain Firm

Reportedly, in this $40 billion deal, a special-purpose vehicle managed by Atlas SP and backed by Apollo will purchase NVIDIA (NVDA.US) chips and issue debt to lenders. Through this structure, SpaceX can protect its corporate credit rating.

Presentations show that SpaceX will lease these chips under a five-year agreement, but will not provide residual-value guarantees or other typical commitments that technology firms make to secure financing. “SpaceX’s obligation to pay rent is absolute,” the presentation materials state.

Crucially, documents reveal SpaceX cannot invoke force majeure to suspend payments, in contrast to companies like Oracle (ORCL.US). Previous reports indicated that Oracle had invoked such clauses in an attempt to delay its data center obligations.

“Regardless of equipment condition, accidents, or force majeure events, rent must be paid. This provides investors with a clear view of SpaceX’s credit standing,” the documents say.

Sources indicate the debt will be structured in multiple tranches, including an $8.3 billion senior secured loan to be syndicated to banks, and multiple bond tranches to be sold to asset managers. Goldman Sachs is leading the loan portion, Apollo is a key bond investor, and Pacific Investment Management Company is also participating in the deal.

Documents show the debt, together with a $7 billion lease prepayment, will finance the purchase of approximately $47.3 billion in graphics processing equipment, namely NVIDIA’s latest Rubin chips. These chips will be delivered in the first half of 2027.