SpaceX plans $40 billion debt raise to purchase Nvidia AI chips
SpaceX intends to raise $40 billion of debt, split into $10 billion of bank loans and $30 billion of investment‑grade bonds, to fund a large purchase of Nvidia AI processors. Apollo Global Management will lead the financing and Pimco is among the lenders. The transaction is expected to close in 2027 and follows a prior $25 billion bond sale in June. The plan has pushed SpaceX’s credit default swap spread to a record 194 basis points.
Why it matters
The company’s filing notes that the CDS spread widened to 194 bps, indicating higher perceived credit risk for investors. A larger debt load could affect SpaceX’s balance sheet and the cost of capital for its AI infrastructure expansion.
Key facts
- 1SpaceX seeks $40 billion of debt to buy Nvidia AI chips. finance.yahoo.com
- 2The financing would consist of $10 billion in bank loans and $30 billion in investment‑grade bonds. finance.yahoo.com
- 3Apollo Global Management will lead the debt sale. finance.yahoo.com
- 4Pimco is among the lenders in talks. finance.yahoo.com
- 5The deal is expected to close in 2027. finance.yahoo.com
- 6SpaceX’s 5‑year CDS spread rose to 194 basis points after the announcement. benzinga.com
Summary written by AlphAI from 6 of 6 sources. Not investment advice. Figures are as stated by the linked sources.