Updated
Updated · Bloomberg · Oct 11
SpaceX, Broadcom Plan Debt Deals as AI Borrowers Chase $70 Billion Opportunity
Updated
Updated · Bloomberg · Oct 11

SpaceX, Broadcom Plan Debt Deals as AI Borrowers Chase $70 Billion Opportunity

3 articles · Updated · Bloomberg · Oct 11

Summary

  • SpaceX and Broadcom are preparing major debt sales, adding to a tech bond pipeline that is growing even as higher yields usually curb issuance.
  • AI spending is driving the borrowing: hyperscalers are willing to pay more to fund data centers and AI chips because expected returns remain large.
  • That financing wave is heightening investor concern about how much new debt is still coming to market from companies racing to build AI capacity.
  • OpenAI’s annualized revenue is expected to reach $70 billion or more by year-end, underscoring why issuers still see AI expansion as worth the higher funding cost.

Insights

As massive AI data centers rely on extreme leverage and opaque financing, who will be left holding the bag if AI demand collapses?
With tech giants hiding billions in off-balance-sheet AI debt, are we witnessing a technological revolution or the next major credit crisis?