SpaceX readies $20 bln bond for AI push

SpaceX (SPCX) is preparing to tap the bond market with an investment-grade dollar offering of at least $20 billion as it accelerates spending on artificial intelligence. Bankers working with the company are expected to meet investors as early as next week to outline the potential transaction. The size of the deal has not been finalized and could change, but the current plan targets a minimum of $20 billion.

The proposed bond would mark the first time SpaceX (SPCX) issues investment-grade dollar debt. It comes shortly after the company’s Nasdaq debut, which pushed its valuation above $2 trillion. On June 18, the stock was down about 6% in afternoon trading, following the initial surge after listing.

Proceeds from the planned bond sale are earmarked to refinance a $20 billion bridge loan taken earlier this year. That bridge financing was arranged after SpaceX acquired xAI in February, providing interim funding while a longer-term capital structure was put in place. The new bond is designed to replace that short-term borrowing with more permanent debt.

Bank of America (BAC), Citigroup (C), JPMorgan Chase (JPM), Goldman Sachs (GS) and Morgan Stanley (MS) provided the original bridge loan to SpaceX. These same banks are expected to run the bond deal, leveraging their existing exposure and relationships with the company. The refinancing would leave SpaceX with sizeable, longer-dated funding to support its strategic initiatives.

SpaceX is planning an ambitious expansion in artificial intelligence that requires substantial upfront investment. The AI program is expected to demand tens of billions of dollars for new data centers, advanced computing hardware and additional power infrastructure. These capital needs underpin the scale of the contemplated bond financing and the earlier bridge loan.

The move into AI comes alongside SpaceX’s existing activities in rockets and related technologies, adding another capital-intensive area to its operations. Accessing the investment-grade dollar bond market provides a way to raise large sums to fund these projects while transitioning from short-term bridge financing to longer-term debt.

SpaceX’s decision to pursue a sizeable bond sale follows its recent listing on Nasdaq, which sharply increased its market valuation. With the company now valued at more than $2 trillion, it has greater visibility in public markets as it seeks to finance large-scale AI infrastructure. The combination of equity market access and a planned investment-grade bond issue highlights the scale of its current funding drive.

While the company did not immediately comment on the financing plans, the preparations signal a continued push to secure the resources needed for AI expansion. The outcome of investor meetings and the final size and terms of the bond will help determine how SpaceX structures its balance sheet to support these initiatives.