SpaceX Credit Risk Hits 194bp on $40 Billion Debt Plan for Nvidia Chips
Updated
Updated · Financial Times · Oct 7
SpaceX Credit Risk Hits 194bp on $40 Billion Debt Plan for Nvidia Chips
3 articles · Updated · Financial Times · Oct 7
Summary
194 basis points — SpaceX’s five-year CDS jumped to a record on Wednesday after its $40 billion borrowing plan to buy Nvidia chips alarmed debt investors.
The fundraising would combine $10 billion in bank loans with $30 billion in investment-grade bonds, adding to the $25 billion of debt SpaceX sold in June after its $86 billion IPO.
SpaceX’s 2056 bond also weakened, with its spread over Treasuries widening 0.09 percentage points to 2.36 points, up from 1.75 points in June.
Investor unease reflects doubts over Elon Musk’s push to turn SpaceX into a major AI player, with Morgan Stanley saying some clients question its prospects in frontier models and orbital compute.
The move fits a broader AI-financing boom that has also lifted hedging costs for Oracle, Nvidia, Alphabet, Meta and Microsoft as investors seek protection against an AI spending stumble.