SpaceX Plans to Take on $40 Billion in New Debt for AI Expansion
SpaceX is planning to raise up to $40 billion in new debt to fund its growing investments in artificial intelligence (AI), particularly through the purchase of GPUs from Nvidia. The company's S-1 filing highlights a massive total addressable market for AI—$26.5 trillion—which dwarfs its space-related opportunities at $370 billion. This shift toward heavy investment in AI is already evident, with capital expenditures on AI jumping to $15.8 billion in the most recent quarter from just $749 million a year ago. SpaceX's aggressive spending strategy includes acquiring an AI coding startup for $60 billion earlier this year and analysts projecting capex of around $200 billion annually by 2027 and 2028. These large expenditures are expected to be funded through debt or stock issuance, both of which could negatively impact investors due to increased interest costs or shareholder dilution.