Pimco buys $4 billion slice of SpaceX's $40 billion AI chip financing

Pimco is buying a $4 billion slice of SpaceX's roughly $40 billion AI chip financing package, according to Bloomberg, citing unnamed sources. The deal involves a master finance lease managed by Apollo Global Management for graphics processing units. SpaceX entered a binding commitment letter on Oct. 24 for the lease, with equipment delivered in tranches over five-year terms starting in the first half of 2027. Pimco's stake is in the A2 tranche, a middle layer of the debt offering, which is expected to close before year end. The financing comes as debt markets have soured on AI companies, with a junior portion previously discussed at a mid-8% yield. SpaceX is expanding computing capacity for AI customers, targeting a $100 billion annualized revenue run rate by end of 2026.