SpaceX Finalizes $40 Billion Financing With Interest Rate Expected to Reach 8.3%
Key Facts
SpaceX is finalizing $40 billion in debt financing at a substantially higher interest cost than its previous issuance, according to a report published by Semafor on October 22, 2026. Citing people familiar with the deal, the outlet said the lower-rated tranche is expected to carry an interest rate of about 8.3%. The safer tranche is expected to be priced near 7.75% as part of the financing the company is working to complete. That tranche is backed by collateral including some of SpaceX's chips, according to the report. The borrowing will fund purchases of Nvidia AI chips, the purpose Reuters cited in its coverage of the financing talks during October. The deal coincides with weakness in the company's outstanding bonds and growing concern over AI financing, according to Semafor.
Reuters previously reported that the proposed financing structure combines bank borrowing and investment-grade debt to fund chip purchases. The targeted bank loan portion is about $10 billion, according to the source cited by the agency. The other portion of the proposed financing consists of $30 billion in investment-grade debt, according to the same report. Reuters also reported, citing a source, that SpaceX had spoken with asset manager Pimco about the financing. As background to the company's borrowing, its quarterly filing with the U.S. Securities and Exchange Commission showed that the effective interest rate on its bonds was 6.03% on June 30, 2026. That rate represents the accounting interest rate on the bonds at the end of June, while the rates reported by Semafor concern the expected pricing of the financing tranches being finalized in October.
The need to finance chip purchases comes as capital spending accelerates, with SpaceX reporting total spending of $19,593 million in its filing for the third quarter of 2026. That compares with spending of $18,369 million in the second quarter of the same year, according to the filing with the U.S. regulator. Capital spending was $6,880 million in the third quarter of 2025, before the increase recorded in the corresponding period this year. In financial assets, the company's marketable securities totaled $38,561 million on September 30, 2026. In credit markets, Semafor said SpaceX's outstanding bonds weakened in the days preceding its October 22 report amid concerns over spending and debt. In an earlier report published on October 15, the outlet had recorded an 80% increase in the cost of insuring against a company default compared with its level 3 months earlier.
Meanwhile, SpaceX's quarterly filing showed revenue growth in its superintelligence segment, which recorded $7,560 million in the third quarter of 2026. The segment's revenue was $2,561 million in the second quarter of the same year, according to the quarterly comparison provided by the company. On an annual basis, revenue rose from $813 million in the third quarter of 2025, according to the same filing. The company attributed the business's growth to cloud services agreements, among the factors it identified to explain the segment's performance during the period. Other factors it cited included "the acquisition of Cursor and increased adoption of Grok," alongside the reported revenue growth.
For the fourth quarter of 2026, SpaceX expected its capital spending to continue rising, according to the Associated Press, citing the company's outlook. The company set a spending range of $35 billion to $40 billion for that quarter. Apollo and Goldman Sachs are leading the new financing deal whose tranche pricing details were reported by Semafor. The outlet cited its sources as expecting the financing to close in the week following its October 22 report. The expected pricing remains subject to change before the deal closes, according to people familiar with the matter who spoke to Semafor.