SpaceX Eyes $40 Billion Deal to Buy Nvidia Chips

SpaceX is in talks with banks and investors to raise $40,000,000,000 to buy chips from NVIDIA in a deal that would be among the biggest ever debt financings for the AI build out. Bloomberg understands PIMCO is one of the investment managers looking at the deal, and Apollo will lead the financing. For more, let's bring in Bloomberg's markets reporter, Stephens, for details. Anthony, what do we know then about the details of this potential deal? Well, it's interesting that after such a massive IPO that they go to the debt market now in another part of the capital structure to look for cash to continue to fund this build out of AI infrastructure. Right? Even though, you know, SpaceX is associated with these data centers in space, it's here on earth that they are growing out in a massive manner. Right? So where this money gets deployed will also be an interesting question, whether it'll be in the colossus kind of computing center or in the grok kind of AI investment arm. That will be an interesting question. But in terms of the deal itself, what we know for now is it's gonna be split between ten ten billion dollars on on private credit side and then 30 in this kind of financing vehicle. So that's gonna be interesting in terms of who comes in alongside PIMCO and Apollo, what pricing gets done as well because we've seen credit spreads on the hyperscalers kind of blow out a little bit, from a very low base in fairness given what the yields are doing. SpaceX, in particular, has seen its CDS kind of move, materially at, you know, kind of Oracle like as people worry about neo clouds. So there is a few concerns that kinda coalesce here, but it is a massive deal, and people have been looking for this size in AI infrastructure debt. People want to deploy size to get these yields in the AI infrastructure space. There's a lot of demand for it across the globe. You saw how well SoftBank did in its kind of high yield junk bond loan and and bond. Sorry. So it'll be very interesting to see whether that demand continues to flow through and also what other macro knock on impact such a big deal has on yields in general. Perhaps government debt feels the heat from this kind... This level of AI financing.