SpaceX Credit Risk Rises as Company Reportedly Seeks $40B for NVIDIA Chips SpaceX is reportedly looking to raise around $40 billion to purchase NVIDIA ($NVDA) AI chips, and the size of the proposed financing is raising fresh concerns in the credit market. According to the Financial Times, SpaceX is considering roughly $10 billion in bank loans and $30 billion in investment-grade debt, with Apollo Global Management expected to lead the financing. Pimco is also reportedly among the investors discussing the deal. The transaction is expected to close in 2027, although the discussions are still at an early stage and could change or fall apart. The credit-market reaction is particularly interesting because SpaceX only recently received an investment-grade credit rating after its IPO. However, its bonds have already come under pressure as investors worry about the company's heavy capital spending and rising debt. FT reported that SpaceX's 2056 bonds were trading around 85 cents on the dollar, with yields roughly 2.27 percentage points above U.S. Treasuries, a spread closer to junk-bond territory. The spending is tied to SpaceX's rapidly expanding AI and data-center ambitions. Elon Musk has said SpaceX plans to build its data centers exclusively around NVIDIA hardware, while xAI's Colossus 2 is also expected to significantly increase its NVIDIA chip count. For NVIDIA, the proposed order would be another example of the enormous demand for its latest AI processors. But it also highlights a bigger issue across the AI industry: companies are increasingly using debt and structured financing to fund massive GPU purchases and data-center construction. This is where the credit-risk story becomes important. Reuters recently reported that Wall Street lenders are already questioning how much long-term value NVIDIA GPUs should have as collateral, with some investors demanding stronger guarantees and customer commitments. Why it matters: SpaceX is effectively making a huge bet that future AI-compute demand will justify the capital being spent today. If AI infrastructure generates strong recurring cash flows, the leverage could support rapid expansion. If returns or utilization fall short, the large debt burden could become a bigger issue. Bottom line: The reported $40B financing shows just how aggressive SpaceX is becoming in AI infrastructure, but the combination of heavy capex + additional debt + expensive NVIDIA hardware is also putting the company's credit profile under greater scrutiny. #SPCX #SpaceX #NVDA #NVIDIA #AI #ArtificialIntelligence #DataCenters #AIInfrastructure #CreditMarkets #Debt