SpaceX plans $20 billion bond offering to fund AI expansion

SpaceX is reportedly gearing up for its first-ever investment-grade dollar bond offering, with plans to raise at least $20 billion, according to sources familiar with the matter. Bankers for the rockets-to-AI company are expected to meet investors as early as next week to discuss the deal, which aims to support SpaceX's ambitious and capital-intensive artificial intelligence (AI) expansion.

The company’s AI initiatives demand substantial funding, with tens of billions of dollars required for building data centers, acquiring computing hardware, and developing power infrastructure. While the exact size of the bond offering is yet to be finalized, it could help SpaceX secure the resources needed to advance its costly AI projects.

Proceeds from the bond sale are expected to refinance a $20 billion bridging loan that SpaceX secured earlier this year. The loan was used to finance its acquisition of Elon Musk’s AI start-up, xAI, in February. Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, and Morgan Stanley, firms that provided the bridge financing, are anticipated to lead the bond deal, one source revealed.

SpaceX's valuation recently surged past $2 trillion following its highly successful Nasdaq debut last week. Although its shares initially soared during the first two days of trading, they later experienced a pullback as investors weighed whether the company’s lofty valuation aligns with the financial demands of its AI expansion.