People familiar with the talks said SpaceX is discussing as much as 40 billion dollars of debt to buy Nvidia chips. CNBC said Apollo and banks are involved and that terms are not final.
SpaceX is in talks with banks and investors to borrow as much as 40 billion dollars to buy Nvidia chips, Bloomberg reported on Wednesday, citing people familiar with the discussions. The agency said Pacific Investment Management was among those looking at the deal. An earlier Financial Times report, which Bloomberg cited, described an early plan of about 10 billion dollars in bank loans and 30 billion dollars of investment-grade debt.
CNBC, also citing a person familiar with the talks, said Apollo Capital and several banks were in discussions to facilitate the purchase and that the deal would rely mainly on the investment-grade debt market. The person said discussions were preliminary and that lenders and other terms were not set. CNBC said the debt would likely use graphics processors as collateral.
The talks follow a SpaceX bond sale. CNBC said that two weeks after a mid-June initial public offering, the company raised 25 billion dollars in bonds of different durations. It also said AI-related bonds have since sold off and credit spreads have widened.
Bloomberg paired the report with comments from Ray Dalio, who called the AI boom a classic bubble and warned that higher interest rates could pressure it. Those remarks are his view, not a SpaceX statement. Neither SpaceX nor Nvidia confirmed a deal in the accounts used here.
The item is financing talks, not a completed borrowing. No closing date was given.
People Sentiments Neutral
- Ray Dalio called the AI boom a classic bubble.
- CNBC's source said the talks were preliminary and terms were not final.