Elon Musk is scaling AI compute and data center infrastructure by building exclusively on Nvidia's Vera Rubin architecture to avoid diluting current ownership with new stock. The move supports a burgeoning cloud business that could see Anthropic pay the company as much as $84.5B through 2029. Despite the recent spike in credit risk, Moody's and S&P currently rate the company as investment grade.
Tuesday, October 20, 2026
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SpaceX Credit Risk Hits Record on $40B Debt Plan for Nvidia Chips
AI13 days ago
Five year credit default swaps for SpaceX jumped to about 195 basis points on Tuesday, the highest since they began actively trading in June, after the company began arranging a $40B debt package to buy Nvidia chips. The financing effort, led by Apollo Global Management, is expected to consist of $10B in bank loans and $30B in investment grade debt, with a target close date in 2027. The rocket company's shares fell about 1.5% as investors reacted to the surge in borrowing.
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