SpaceX’s credit risk gauge surged to a record high as reports emerged that the company is in talks to raise $40 billion to buy Nvidia chips for AI infrastructure. The five-year credit default swap spread rose 14.5 basis points to 195.4, its highest intraday level since trading began in June. Investment-grade bond spreads widened 12 basis points to 238, significantly above the 175 basis points at issuance in June’s $25 billion debt deal.
SpaceX is seeking $10 billion in bank loans and $30 billion in investment-grade debt, with Apollo Global Management Inc. leading the financing, which may not close until 2027. The fundraising reflects a broader trend of tech and AI companies borrowing hundreds of billions to build data centers, driving up costs for chips, land, and power. Sal Naro of Coherence Credit Strategies called the debt supply “unprecedented,” comparing the AI infrastructure build to railroads but global and simultaneous.
Broadcom Inc.’s syndicate is also gathering $60 billion in AI chip financing for Anthropic PBC and others. A SpaceX representative was not immediately available for comment.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing