SpaceX borrows another $40B for Nvidia chips as bond investors balk at space data centers
jonerp · x · 2026-10-25
Per Pivot to AI citing FT, SpaceX claimed a $28.5 trillion total addressable market (mostly AI) in its June IPO prospectus and is now piling on debt to buy more Nvidia chips:
- After an $86B IPO raise and $25B in bonds in June, SpaceX is issuing another $40 billion bond
- Previous investors got only a two-page memo with pictures of outer space and an arrow pointing to data centers "somewhere in the universe"
- Its credit rating is BBB, second-lowest investment grade
Markets are skeptical: SpaceX credit default swaps jumped from 1.1% to 1.94%, investors are selling the bonds, and Morgan Stanley's Adam Jonas noted investors weren't buying the story.
The author is dubious: space data centers are still impractical, and "somewhere in the universe" includes South Memphis — the chips will likely just be rented to Anthropic and Google, as now.
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