finance
SpaceX bankers prepare US$20 billion bond offering for AI expansion
Bankers for SpaceX are preparing to meet investors next week to discuss a potential US$20 billion bond offering. The proceeds would refinance a bridging loan taken earlier this year after the company acquired xAI.
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SpaceX bankers are preparing to meet investors as early as next week to discuss a bond offering of at least US$20 billion, two sources familiar with the matter said on Thursday. The offering would mark the first time the company has issued investment-grade dollar bonds. The size of the offering is not yet set and may change.
Background on financing Proceeds from the debt offering would refinance a US$20 billion bridging loan that SpaceX took out earlier this year after acquiring xAI in February. Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs and Morgan Stanley provided the bridge financing and are expected to run the deal.
Valuation and market reaction The company’s valuation surged past US$2 trillion following its Nasdaq debut last week. Its shares soared in their first two days of trading before giving up some gains as investors assessed whether the company’s valuation can be justified by its costly AI push.
SpaceX’s AI ambitions require tens of billions of dollars in investment for data centres, computing hardware and power infrastructure.
