SpaceX's $40 billion debt raise gets costlier as AI loan market pulls back

New bonds are pricing more than a percentage point above the company's existing debt, with the final rate still to be set

By LineZotpaper

Published22 October 2026

Read Time1 min

SpaceX's $40 billion debt raise is being finalized at sharply higher interest rates than its current bonds, reflecting a pullback in the AI lending market over the past few weeks, according to people familiar with the deal.

The lowest-rated portion of the deal is expected to carry interest rates of about 8.3%, while a safer piece backed by some of SpaceX's chips is likely to price next week at around 7.75%, the people said. That is more than one percentage point above where SpaceX's existing bonds trade.

The deal is being led by Apollo and Goldman Sachs, both of which declined to comment. Pricing could still change before the debt is finalized, which is expected sometime next week.

President Donald Trump purchased $5 million in SpaceX bonds in August, according to the report.

SpaceX's existing bonds have weakened in recent days as strong earnings were overshadowed by massive spending plans and concerns about the company's debt load, plus broader AI fears fueled by CoreWeave's debt selloff. Default insurance on the company also widened, signaling some misgivings about its plans. SpaceX is currently considering merging with Tesla.

Analysis

Why This Matters

The rising cost of this borrowing is a sign that AI-related credit markets are becoming more cautious after a period of heavy spending.
As one of the largest private borrowers tied to the AI infrastructure boom, SpaceX's deal is a bellwether for how other companies in the sector will fund their expansion.
If rates keep climbing, it could raise the cost of capital for AI infrastructure projects broadly.

Background

SpaceX is Elon Musk's private rocket and satellite company and one of the most closely watched borrowers among private firms. Its debt sales are frequently used as a benchmark for investor appetite in high-growth technology ventures.

The recent wave of AI investment has fueled a large loan market tied to computer chips and data centers, with companies borrowing heavily to build out capacity. That market has now pulled back sharply, and SpaceX's deal is being completed in that tougher environment.

Key Perspectives

Lenders and bond investors: They are demanding materially higher compensation for risk, pushing rates on the new debt more than a point above where SpaceX's existing bonds trade.

Spacex and its banks (Apollo, Goldman Sachs): Final pricing is not yet locked in, and both banks declined to comment. The deal is expected to close next week.

Skeptics: Strong earnings have been overshadowed by massive spending plans and concerns about the company's debt load. The recent CoreWeave debt selloff has added to broader worries about AI-related financing.

What to Watch

The final pricing of the deal, expected to be set next week.
Whether existing SpaceX bonds continue to weaken and default insurance widens further.
Any update on the reported consideration of a merger with Tesla.

Sources

SpaceX $40 billion debt deal gets pricey as AI fears spread · Semafor

Checked

10 claims in this story checked against 1 source: 8 supported.

Show each claim

SupportedSpaceX’s $40 billion debt raise is getting costlier as the AI loan market pulls back.Semafor: “That is more than 1 percentage point more than where SpaceX’s current bonds trade, reflecting an AI-loan market that has pulled back sharply over the past few weeks.”
Partly supportedNew bonds are pricing more than one percentage point above SpaceX’s existing debt, with the final rate still to be set.Semafor: “A safer piece of debt, which is backed by some of SpaceX’s chips, is likely to price next week around 7.75%, the people said. That is more than 1 percentage point more than where SpaceX’s current bonds trade. ... Pricing could change by the time the debt is finalized”
Partly supportedThe $40 billion debt raise is being finalized at sharply higher interest rates than SpaceX’s current bonds, reflecting the AI lending market’s pullback, according to people familiar with the deal.Semafor: “SpaceX’s $40 billion debt raise is being finalized at sharply higher interest rates than when the rocket company last tapped bondholders ... That is more than 1 percentage point more than where SpaceX’s current bonds trade, reflecting an AI-loan market that has pulled back sharply over the past few weeks.”
SupportedThe lowest-rated portion is expected to carry interest rates of about 8.3%.Semafor: “The lowest-rated portion is expected to carry interest rates of about 8.3%, according to people familiar with the deal”
SupportedA safer piece backed by some of SpaceX’s chips is likely to price next week at around 7.75%.Semafor: “A safer piece of debt, which is backed by some of SpaceX’s chips, is likely to price next week around 7.75%, the people said.”
SupportedApollo and Goldman Sachs are leading the deal, and both declined to comment.Semafor: “according to people familiar with the deal, which is being led by Apollo and Goldman Sachs. ... Goldman and Apollo declined to comment.”
SupportedDonald Trump purchased $5 million in SpaceX bonds in August.Semafor: “President Donald Trump purchased $5 million in SpaceX bonds in August.”
SupportedSpaceX’s existing bonds weakened in recent days as strong earnings were overshadowed by spending plans, debt concerns and broader AI fears fueled by CoreWeave’s debt selloff.Semafor: “Existing bonds at SpaceX ... have weakened in recent days as strong earnings were overshadowed by massive spending plans and concerns about the company’s debt load, plus broader AI fears fueled by CoreWeave’s debt selloff.”
SupportedDefault insurance on SpaceX widened, signaling misgivings about its plans.Semafor: “Default insurance on the company also widened, signaling some misgivings on the company’s plans.”
SupportedSpaceX is currently considering merging with Tesla.Semafor: “SpaceX, which is currently considering merging with Tesla”