SpaceX Eyes $20 Billion Bond Offering to Fuel AI Ambitions

The capital raise is designed to refinance a $20 billion bridge loan secured earlier this year to facilitate the acquisition of Elon Musk’s AI startup, xAI. Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, and Morgan Stanley—the firms that provided the initial bridge financing—are expected to lead the deal. While the final size of the offering remains fluid, the funds are earmarked for the massive infrastructure requirements of the company’s AI pivot, including data centers, specialized computing hardware, and energy grids.

The market reaction has been cautious. Following a blockbuster public listing, SpaceX shares have faced volatility as investors weigh the company’s lofty valuation against the immense costs of its AI expansion. Shares were down 6% in afternoon trading following reports of the upcoming debt issuance. SpaceX has not yet commented on the potential bond sale.