Bloomberg Says SpaceX Struggling to Raise $40 Billion in Debt for AI Chip Purchases

SpaceX is struggling to raise $40 billion to build out artificial intelligence infrastructure, Bloomberg reported, as rising borrowing costs complicate the effort amid growing investor concern over AI spending.

Bloomberg reported on October 24 that SpaceX is seeking to raise $40 billion in debt through a special purpose vehicle, or SPV, to finance purchases of Nvidia AI chips. The company has had difficulty reaching agreement on the financing terms.

The transaction is structured so SpaceX would not assume the debt directly. By raising the funds through an SPV, the company aims to reduce the burden on its balance sheet and preserve an investment-grade credit rating.

Goldman Sachs and other financial firms are negotiating terms with investors including Apollo Global Management. Those talks have become more difficult as concern grows over the large debt loads building up across AI companies, making it harder to finalize details such as interest rates.

In recent weeks, negotiations included discussion of some subordinated debt at yields in the mid-8% range, Bloomberg reported. Investors are now reassessing the financing terms as volatility in financial markets increases.

SpaceX's existing debt burden is also a variable. Its credit rating is near speculative grade, fueling concern that additional borrowing could add pressure to that rating.

Still, SpaceX plans to continue pursuing the financing. Chief Financial Officer Bret Johnson said in a recent earnings release that he is confident the company can raise funds prudently while maintaining an investment-grade credit rating.