Pimco buys $4B slice of SpaceX debt in Apollo-led AI financing deal

Pimco has acquired a $4 billion portion of SpaceX's debt financing, led by Apollo Global Management, to support the company's artificial intelligence expansion. The deal was reported by Bloomberg citing sources familiar with the matter. SpaceX announced Monday a roughly $40 billion equipment financing agreement, led by Apollo, to facilitate purchases of Nvidia graphics processing units and related hardware. Pimco's stake is part of the tranche A2, positioned between subordinate and senior debt layers, issued as private 144a bonds tradable among institutional investors. Pimco has become a key buyer of AI-related debt despite warning about sector excesses, having also backed data center projects for Oracle and Meta. Debt markets have grown cautious toward AI firms recently as rapid spending outpaces profitability, and the interest rate on this debt was not disclosed.