Elon Musk Is Betting $40 Billion on Nvidia Chips — SpaceX Investors Aren't So Sure as SPCX Credit Default Swaps Hit Record High: Report
Space Exploration Technologies Corp.’s (NASDAQ: SPCX ) credit risk jumped to a record high after reports that Elon Musk’s company plans to raise $40 billion to buy Nvidia Corp. (NASDAQ: NVDA ) chips, adding to its borrowing just months after its first major bond sale. SpaceX Credit Spreads Hit Record High The Financial Times reported on Wednesday that SpaceX’s five-year credit-default-swap (CDS) spread rose to 194 basis points Wednesday from about 110 basis points in June. Investors now pay roughly $19,400 annually to insure $1 million of its debt against default. The yield spread on SpaceX’s 2056 bond also widened to 2.36 percentage points over U.S. Treasuries, from 1.75 points in June. SpaceX is seeking about $10 billion in bank loans and $30 billion in investment-grade debt, with Apollo Global Management expected to lead the financing and Pimco among lenders in talks. The proposed deal could close in 2027 and would fund Nvidia chips as SpaceX expands AI infrastructure. Musk Expands SpaceX’s AI Infrastructure Push The plan follows SpaceX’s June IPO, which generated about $85.7 billion in net proceeds, and a $25 billion senior-note offering later that month. Those notes carry coup
’s (NASDAQ: SPCX ) credit risk jumped to a record high after reports that Elon Musk’s company plans to raise $40 billion to buy Nvidia Corp. (NASDAQ: NVDA ) chips, adding to its borrowing just months after its first major bond sale. SpaceX Credit Spreads Hit Record High The Financial Times reported on Wednesday that SpaceX’s five-year credit-default-swap (CDS) spread rose to 194 basis points Wednesday from about 110 basis points in June. Investors now pay roughly $19,400 annually to insure $1 million of its debt against default.
S. 75 points in June. SpaceX is seeking about $10 billion in bank loans and $30 billion in investment-grade debt, with Apollo Global Management expected to lead the financing and Pimco among lenders in talks. The proposed deal could close in 2027 and would fund Nvidia chips as SpaceX expands AI infrastructure.
7 billion in net proceeds, and a $25 billion senior-note offering later that month. 65%. 4 billion of debt as of June 30, up from $22 billion at the end of 2025. Read Also: Jim Cramer Says SPCX Could Come to Fruition Long Before Tesla After Goldman Sachs Raises Price Target: 'Real Company With Real Numbers' The borrowing reflects Musk’s growing AI push.
Nvidia said in August that SpaceXAI would deploy its Vera CPUs for agentic AI workloads, expand Grok infrastructure on the Vera Rubin platform toward gigawatts of computing capacity and use an optimized Vera Rubin system aboard its first-generation Starmind AI satellite. Investors Question Scale Of AI Ambitions Morgan Stanley analyst Adam Jonas highlighted investor hesitation this week. "Last night, when I did that in front of 40 clients, not a single hand went up," he wrote after asking who owned SpaceX shares. He has also flagged uncertainty around whether SpaceX can become a major frontier-AI provider or deploy meaningful orbital compute.
Still, Reuters Breakingviews noted SpaceX carries a BBB credit rating, highlighting that widening CDS spreads signal higher perceived risk rather than imminent default. The move comes as tech companies increasingly tap debt markets to fund AI chips and data centers, prompting investors to hedge against a slowdown in the spending boom. 53 in pre-market trading on Thursday. Read Also: SpaceX's Starlink Going Interplanetary?
Elon Musk Outlines Vision for Moon, Mars and Beyond Photo courtesy: Shutterstock