Breaking: Elon Musk’s SpaceX Signs Massive $40 Billion GPU Deal With Apollo

SpaceX, a company owned by Tesla founder and CEO Elon Musk, has announced a $40 billion investment deal in graphics processing units (GPUs) and equipment for its artificial intelligence systems with Apollo Global Management. The aerospace company entered into a binding commitment letter on October 24, which included the proposed finance lease that will close before the end of 2026, according to the regulatory filing on Monday, October 26.

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SpaceX, Apollo Structure $40B GPU Lease

The deal stipulates that an Apollo-managed unit will purchase GPU gear and then lease it to Elon Musk’s SpaceX, per the SEC filing. The space company will then deploy the gear in data centers that it selects. The hardware will be delivered in multi-lots, and each lease will run for about five to five and a half years, as the hardware is delivered on the respective dates of the leases.

The total principal payments under the lease agreements will be about $40 billion, SpaceX is expecting. Quarterly payments will be in advance, and include a portion of the costs of the equipment financed as well as interest computed at a fixed annual rate. The final rate will be negotiated before signing the master lease, according to the space company.

Subject to certain closing conditions. Lease schedules are expected to start in the first half of 2027 when the GPUs will be delivered.

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Elon Musk Details GPU Financing Strategy

Musk had previously revealed that SpaceX had obtained $40 billion in debt financing to buy computing gear, on the basis of its credit position and already solid businesses in other fields.

“SpaceX closed $40B of debt for GPUs, but we’re investment grade and have Starlink & launch revenue,” Musk wrote on X.

The company’s satellite internet business and rocket launch operations are sources of revenue that enable it to fund large infrastructure investments.

Musk also clarified the expected delivery schedule in a separate post. In the follow-up update, he stated, “This is primarily callable debt for GPU purchases that will arrive in Q1 and Q2.”

He confirmed the equipment would arrive during the first half of 2027. On this, Musk added, “Not a major factor this quarter.”

The money follows SpaceX’s plans to invest heavily in infrastructure. Chief Financial Officer Bret Johnsen has previously said that the company would spend between $35 billion and $40 billion in the fourth quarter, Reuters reports.

Musk has also pointed to poor lending terms for companies that rely heavily on AI hardware.