NVDA
XSPC
SpaceX’s AI spending spree meets Wall Street side-eye
Elon Musk’s SpaceX is reportedly plotting a massive $40 billion financing package to scoop up Nvidia chips and keep its AI infrastructure push humming. That’s a lot of zeroes, even by Musk standards, and investors are reacting the way you’d expect when a company already carrying plenty of debt comes back asking for more.
The bond market is doing the nervous laugh
The warning signs are flashing in the credit market. SpaceX’s five-year CDS spread jumped to a record 194 basis points from about 110 in June, while the spread on its 2056 bond widened too. Translation: traders are charging more to insure against default, even if nobody’s exactly saying the sky is falling tomorrow.
Why this matters for you
This isn’t just a SpaceX story — it’s also another reminder that the AI buildout is getting wildly expensive. The company is reportedly lining up about $10 billion in bank loans and $30 billion in investment-grade debt, with Apollo Global Management expected to help lead the financing and Pimco in the mix. If the deal closes, it would show just how far companies are willing to lever up to stay in the Nvidia-powered AI race.
Big picture: the AI boom is still alive and spending, but Wall Street is starting to ask who’s footing the bill when the chips — literally — get expensive.