SpaceX in Talks to Borrow $40 Billion to Buy Nvidia Chips

You know, months before the IPO happened, there was a lot of discussion. You know, in the existing investor base. And then the bank is like, this is going to be the biggest IPO of all time, and they will still go to the capital market straight after. And so in this case, what we're reporting is they're in talks. I think they're pretty early stage talks right. To raise or borrow $40 billion. $10 billion Is loans. And then the balance $30 billion, you know in investment grade credit. Um, and you know to to the market that is a little worrying. There are warning signs, I think you guys may have seen the CDs chart that came out this morning after the news hit. Um, but the market's like really happy to support that because there are like bigger picture discussions about the useful economic life of a GPU and the best way to finance it to get it into a data center quickly. What about, um, this being a blueprint add like maybe a troubling blueprint for other big tech companies? I mean, I'm just thinking, you know, anthropic and OpenAI who have yet to come to market. Are we just going to see them do the same and take a page out of this really good book, really good question. Question on Bloomberg Tech later. 1130 I have, um, JD Moriarty, who's the vice chair and investment banking at Bank of America. That's exactly the question to ask him, right? That when you're waiting for anthropic and then OpenAI's IPO, do you investors now, right now need to be comfortable with the idea that when those massive IPOs happen, they immediately go to the debt markets. But it's not a blueprint in space X's case. Right. Because remember, all of the hyperscalers, um, cloud computing companies who build and operate their own data centers have been borrowing at unprecedented levels as well. It's been happening, you know, for 18 months. And so like it it's already out there in the market. And again, the market is pretty relaxed about it. Not only the borrowing but the idea these companies tip into negative free cash flow as a consequence of their spending and borrowing. Um, let's talk about another big tech name. Um, in the opposite direction. We're talking about tangible things that people can buy for their homes. And that is, um, Apple is entering the smart home device market. Um, it's looking to partner up with LG on what smart doorbells, locks and thermostats. These will not be Apple branded items. Yeah. So it's basically a JV which is slightly more rare in, um, Apple's context. Um, I appreciate like a lot of people listening to us right now on, on radio and they might be watching on YouTube, but go to the story that Mark Gurman published and there are some diagrams in there, basically, of what a deadbolt lock would look like. Um, of what a smart thermostat would look like. But it is in line with Apple for this much deeper push into the home that they have been doing of late. Um, you know, to move away from the smart phone, the iPhone, which is still their bread and butter, but sort of ceding that the competence of LG and in existing product lines like smart locks and doorbells like that, they're good at that. So Apple is kind of leveraging their expertise. I'm wondering, though, if Apple is late to the home device or home tech game. I mean, a lot of folks have sort of decided what they're going to use for their home, and it takes a lot to have something maybe move. I mean, unless I guess you're part of the Apple ecosystem and you're just buying into it, but I just wonder if there's going to be a little bit of a hurdle here for Apple. You know, um, I'm not going to answer this from the sort of reporting, journalistic standpoint. Answer is the consumer. Yeah. Like in my home, I have a SimpliSafe security system. I have Alexa base devices. Echo devices is my smart home thing, right. You know, which is from Amazon. Um, and I use an iPhone and a MacBook computer. So, like, I'm all over the place and lots of consumers are confronting that the bat from an apple is that. Yes. If you are an iPhone user, right, or you're a mac user, that there is an appeal to sort of unifying the hardware bases that you have. In this case, again, it's a JB of LG, but um, it's, it's a it's a tough and saturated market. Sure.