SpaceX (SPCX) Seeks $40 Billion in Debt to Fund Nvidia Chip Purchases

Apollo to Lead $30 Billion Bonds

SpaceX (SPCX) is in talks to raise $40 billion in fresh debt to buy chips for the artificial intelligence business it absorbed in February. The structure pairs $10 billion of bank loans with $30 billion of investment-grade bonds, and Apollo, the private credit specialist, is lined up to lead the bond sale. The plan surfaced in a market post, SpaceX $40 billion debt talks, which credited the Financial Times as its source. Even at a BBB rating, the planned bonds would sit at investment grade, a sign underwriters think the chip spending converts into serviceable revenue. Since SpaceX took over Elon Musk's AI firm xAI in February, its spending on artificial intelligence has outrun what the rocket and Starlink businesses together earn, which is why the balance sheet keeps growing. The chips in this package would expand the compute capacity behind xAI's models.

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SpaceX $40 billion debt talks.

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The company only reached public markets in June, collecting close to $86 billion in its debut, and sold another $25 billion of bonds a few weeks later; the cumulative asks now top $150 billion in four months as a listed firm. Credit markets have taken note: SpaceX carries a BBB rating, two notches below Meta and Alphabet. Morgan Stanley analyst Adam Jonas wrote in August that SpaceX may need to borrow roughly $80 billion a year through 2035 to keep the plan funded. The money raised now would flow to NVIDIA (NVDA), and all 35 Wall Street analysts covering the chipmaker rate it a buy, with an average target of $324.20. No final terms, timing or underwriting fees have been disclosed. COINOTAG data shows the shares last trading at $164.28, up 0.28% over 24 hours and already above the $162.57 close from Friday.

Dalio's Bubble Warning

Days before the debt plan surfaced, Ray Dalio told an investor audience that the cycle behind this borrowing is close to breaking. Dalio, the founder of hedge fund Bridgewater Associates, described artificial intelligence as a classic bubble during a Forbes conference in Singapore on Wednesday. His concern sits with debt and rising rates: investors holding paper gains eventually sell to raise cash, and that, he said, is where bubbles usually break. “We’re in the part of the cycle that is before that but approaching that. I think we’re close to that,” he said. His transmission line is refinancing: debt-funded infrastructure needs either rising revenue or cheaper credit to hold its value.

The warning lands on a sector already carrying enormous forward commitments. Anthropic has $518 billion in future computing obligations and OpenAI has $665 billion, and Oracle shares slid on Thursday after questions arose about OpenAI's revenue. Future computing commitments are contracted purchases of data-center capacity, liabilities that fall due whether or not the demand arrives. Some commentators, including The Motley Fool's Jeremy Bowman, argue SpaceX would be the first stock to fall if the cycle turned, though Bowman doubts a burst is imminent.

Wall Street itself is split on whether the borrowing pays off: of 35 analysts tracking SpaceX, 28 rate it a buy, five a hold and two a sell. The average 12-month target of $216.21 sits about 33% above Friday's close of $162.57, with the range running from $75 to $450. Two overhangs frame the debate: the shares ended Friday roughly 28% below their 52-week high, and 1.31 billion insider shares unlock after third-quarter results. Dalio's framing reduces the whole spending question to one variable: if rates keep rising, the pressure to sell builds.

$162.69 Floor, $167.48 Ceiling

The tape gives the debate a clean setup. COINOTAG's composite scoring puts the nearest resistance at $167.48, rated 82/100, with the strongest support underneath at $162.69, rated 89/100. The stock sits at $164.28 in a daily uptrend, its RSI at 60.8 and its MACD signal bullish, with perpetual open interest of $468.3 million. Neither level has been tested since the debt plan surfaced: the 24-hour range runs $163.68 to $164.46. A push above $167.48 would shift the question of whether the spending defends the market cap or mortgages it toward the bulls; a close back under $162.69 would hand the bubble case its first hard evidence.