SpaceX is currently negotiating a new debt package totaling $40 billion, which includes $10 billion in bank loans and $30 billion in investment-grade debt. The company intends to use these funds to purchase Nvidia chips. Apollo is leading the financing efforts for this deal.
The company, which holds a BBB credit rating, has significantly increased its spending on AI since acquiring xAI in February. According to analyst projections from Morgan Stanley, SpaceX might require annual borrowing of approximately $80 billion through 2035 to sustain its operations and infrastructure needs.
Ray Dalio, founder of Bridgewater Associates, recently characterized the current AI investment cycle as a classic bubble. He noted that rising interest rates and the eventual need for investors to liquidate paper gains to raise cash create significant market pressure, suggesting the cycle is approaching a potential correction.
Market sentiment remains mixed regarding these capital requirements. While 28 analysts rate SpaceX stock as a buy, five suggest a hold, and two recommend a sell. The average 12-month price target for the stock is $216.21, following a recent closing price of $162.57.
Other major players in the sector are also committing substantial capital to computing infrastructure. Anthropic has reported future computing commitments of $518 billion, while OpenAI has reached $665 billion. These figures highlight the scale of debt-fueled spending currently circulating within the AI industry.
