SpaceX is reportedly pursuing $40 billion in debt financing to buy Nvidia chips, with Apollo Global Management leading the process — a striking escalation in the race to fund AI infrastructure.¹

The proposed package would be split between roughly $30 billion of investment-grade debt and $10 billion in bank loans, according to the report. That structure would put SpaceX among the clearest examples of a broader trend: major technology players continuing to spend aggressively despite higher borrowing costs and increasingly vocal warnings about a potential debt bubble.¹

The timing is notable. Ray Dalio raised concerns about debt-market excesses on Wednesday, yet demand for the infrastructure powering artificial intelligence has shown little sign of retreat. Nvidia, whose chips are at the centre of that spending boom, hit a new all-time high and reached a $5.65 trillion market value, the report said.¹

SpaceX, meanwhile, has had its own burst of market momentum. Its shares rose nearly 16% over the previous week to close at $171.92, above the $135 IPO price and the $150 level of its first post-listing trades.¹

The bullish case rests partly on the company’s BBB credit rating: “Insurance and pension funds would be able to buy SpaceX’s debt,” widening the pool of potential lenders. But the report also pointed to a more cautious signal in the market: SpaceX bonds due in 2056 were trading at about 85 cents on the dollar, with yields roughly 2.27 percentage points above US Treasuries — a spread comparable to junk-rated debt.¹

That gap defines the wager. Investors may see AI computing capacity as indispensable; they are still demanding to be paid for the risk of financing it.