Bond Investors Are Wary of SpaceX's Borrowing Binge to Buy Nvidia Chips

SpaceX plans to borrow $40 billion to purchase Nvidia chips for AI infrastructure, which would double its existing debt. Bond investors are concerned about the company's ability to repay, as evidenced by a 76% surge in credit default swap prices since June. Despite having $100 billion in cash on hand from its recent IPO, SpaceX is burning through funds rapidly, raising questions about whether the company can compete in the AI space.