Space Exploration Technologies Corp. (SPCX) shares fell 0.40% to $146.90, a decline of $0.59, before recovering 0.30% to $147.34 in after-hours trading. The move followed SpaceX’s announcement of a $40 billion financing agreement to acquire Nvidia GPUs for its computing operations.

The agreement is intended to support the development of Grok, xAI’s AI model, and expand data center infrastructure through SpaceX’s xAI business. SpaceX expects GPU leasing under the arrangement to begin in the first half of 2027.

SpaceX Arranges $40 Billion Nvidia GPU Financing

SpaceX structured the transaction as a master finance lease involving Apollo Global Management and Goldman Sachs. Apollo and Goldman Sachs led the financing commitments, while Goldman Sachs acted as the structuring agent. Affiliates of BlackRock, Goldman Sachs Asset Management, and KKR also participated.

Under the agreement, an Apollo-managed entity will purchase Nvidia’s Vera Rubin GPUs, the chipmaker’s next-generation data center platform, and related equipment for SpaceX. SpaceX will lease the hardware in separate tranches, with each lease expected to run for approximately five to 5.25 years. The company will make quarterly payments covering principal and a fixed annual financing rate.

The financing structure also includes rent equal to 5% of each tranche’s financed cost. SpaceX expects to complete the agreement before year-end, with equipment leasing scheduled to start during the first half of 2027. The company described the arrangement as the largest committed GPU financing transaction to date — a scale that underscores how the AI infrastructure buildout is increasingly funded through structured credit, and how SpaceX’s investment-grade rating gives it access to financing terms that specialized GPU operators have found harder to secure.

GPUs to Support Grok and Data Center Expansion

SpaceX plans to deploy the Nvidia processors across infrastructure supporting Grok and other xAI computing requirements. The equipment is expected to add capacity for model training and request processing as computing demand expands. The investment will also support terrestrial data center development alongside the company’s longer-term orbital computing plans.

SpaceX absorbed xAI in February, combining its space operations with the artificial intelligence business. The integration placed Grok development and computing infrastructure within the company’s broader investment strategy. Starlink subscriptions and rocket launches continue to generate revenue outside the data center business — a mix that sets SpaceX apart from specialized GPU providers whose businesses center on AI computing demand.

Moody’s assigned SpaceX a Baa1 investment-grade rating in June, strengthening its position in credit markets. Elon Musk later warned that lenders had restricted financing access for companies dependent on AI data center revenue. He also predicted consolidation among specialized cloud providers facing tighter borrowing conditions.

GPU Financing Faces Debt and Depreciation Risks

The SpaceX agreement follows a $36 billion structured financing transaction supporting GPU purchases for Anthropic. Apollo and Blackstone led that earlier arrangement, which involved Broadcom and equipment leasing commitments. Large technology infrastructure projects continue to attract financing despite growing concerns about hardware values.

CoreWeave illustrates the financial pressure facing specialized GPU cloud providers as borrowing costs rise. Its shares declined approximately 30% between September 30 and October 16, while its debt approached $50 billion. Its unsecured bonds yielded approximately 15% in mid-October, reflecting expensive financing conditions.

GPU depreciation presents another challenge because computing hardware can lose value before financing agreements expire. CoreWeave recorded nearly $1.4 billion in depreciation and amortization against approximately $2.6 billion in second-quarter revenue. Venture capitalist Chamath Palihapitiya also expects unused computing capacity and industry consolidation during 2027. Against that backdrop, the near-term markers for the SpaceX arrangement are its completion before year-end and the start of GPU leasing in the first half of 2027 — the points at which the largest committed GPU financing to date would begin converting into deployed computing capacity.