Elon Musk's SpaceX eyes $20bn bond sale after Nasdaq debut

SpaceX's financial advisers are laying the groundwork to meet with investors as early as next week to discuss a massive bond offering of at least $20 billion. According to sources familiar with the matter, Elon Musk’s newly public company is seeking substantial Wall Street funding to fuel a highly capital-intensive expansion into artificial intelligence.

The upcoming transaction would mark the very first time the aerospace-and-AI giant has issued investment-grade dollar bonds. While the final size of the debt offering has not been locked in and could fluctuate, the proceeds are earmarked to refinance a $20 billion bridge loan. SpaceX originally secured that short-term financing earlier this year to fund its blockbuster acquisition of Musk’s AI startup, xAI, in February, News.Az reports, citing Reuters.

Major financial institutions—including Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, and Morgan Stanley—provided the initial bridge loan and are widely expected to lead the upcoming bond sale.

The ambitious pivot into AI comes with an immense price tag, requiring tens of billions of dollars to build out state-of-the-art data centers, source premium computing hardware, and secure heavy power infrastructure. The sheer scale of this infrastructure spending has put SpaceX's financials under a microscope.

Following its highly anticipated Nasdaq debut last week, SpaceX’s valuation briefly skyrocketed past the $2 trillion mark. While shares initially surged during the first two days of public trading, the stock has since given up some of those gains, closing down 6% in afternoon trading. The market pullback reflects ongoing investor debate over whether the company's aggressive, multi-billion-dollar bet on AI hardware can justify its premium, historic valuation.

News.Az 

By Aysel Mammadzada