SpaceX seeks $40 billion for Nvidia chips amid new borrowing spree

SpaceX is initiating a new round of significant borrowing, seeking to raise $40 billion to fund the purchase of Nvidia chips. This follows a recent $25 billion tap into the US corporate bond market.

Elon Musk’s large-scale financing activities have historically impacted Wall Street. His 2022 acquisition of Twitter left banks holding $13 billion in debt during a period of rising interest rates. Additionally, SpaceX’s $75 billion listing in June reportedly absorbed substantial liquidity, potentially delaying initial public offerings for other major AI firms such as Anthropic PBC and OpenAI.

Despite rising borrowing costs and investor caution, the bond market currently shows capacity for these large-scale tech transactions. While the tech industry accounts for approximately 10.5 percent of the $2.3 trillion US corporate bond market, banks still maintain a larger 18 percent share.