SpaceX commits to about $40 billion of Apollo-managed GPU equipment leases, filing shows

SpaceX (Nasdaq: SPCX) said it expects to pay about $40 billion in total principal under leases for graphics processing unit (GPU) equipment from an entity managed by Apollo Global Management, according to a Form 8-K the company signed on Monday, October 26.

The company reported third-quarter results on October 23, as FinanceInTime reported.

What happened

SpaceX said it entered into a binding commitment letter on October 24 to sign a master finance lease with an Apollo-managed entity, called the lessor in the filing. The lessor will acquire GPU pods and related equipment and lease them to SpaceX for use at data centers the company selects.

The equipment will be delivered in tranches, each under its own lease schedule with a term of about five to five and one-quarter years from the start date of that tranche, the filing says. Rent is payable quarterly in advance. It generally consists of one-twentieth of the financed cost of the tranche, plus an amount calculated at a fixed annual rate on the outstanding lease balance and certain ongoing costs and expenses.

The fixed rate has not been set. SpaceX said it will be determined at pricing, before the company enters the master finance lease.

What the filing does not settle

The commitment is not yet a signed lease. SpaceX said entry into the master finance lease is subject to specified closing conditions and is expected to close before year end. The lease schedules are expected to start in the first half of 2027, when the GPUs are delivered.

The filing warns that the transaction may not close on the anticipated terms or timeline, or at all, and that actual equipment deliveries, lease terms or total principal payments may differ from current expectations. It does not name the equipment maker or the data center sites, and it does not list the closing conditions.

What to watch

The filing points to two dates: closing of the master finance lease before the end of 2026, and the start of the lease schedules in the first half of 2027. The fixed rate is to be set at pricing, which comes before closing.