SpaceX’s $40 billion AI financing is getting more expensive

SpaceX’s plan to finance an AI buildout with $40 billion of debt has run into a problem before the deal is finalized: investors now want a higher return for lending to AI infrastructure. The proposed structure would place the borrowing in a separate vehicle that buys Nvidia chips, rather than putting the full debt directly on SpaceX’s balance sheet. That matters because it could let SpaceX expand computing capacity without making its own finances look much more leveraged. But keeping debt in a separate legal entity does not remove the underlying business risk, and recent market volatility has made lenders more cautious about the cash flows that AI projects will generate. The result is tougher negotiations over the interest rate and potentially a more expensive path to building the infrastructure.