SpaceX's $40B AI-chip debt deal nears close at up to 8.3% interest as AI credit jitters spread

SpaceX is finalising its $40 billion debt raise at sharply higher rates than its last bond sale, Semafor reported on 22 October. In the deal led by Apollo and Goldman Sachs, the lowest-rated portion is expected to carry about 8.3%, while a safer piece backed by some of SpaceX's chips may price near 7.75% next week, more than one percentage point above where its existing bonds trade. Semafor links the higher cost to a sharp pullback in AI lending, including CoreWeave's debt sell-off; SpaceX's bonds and default insurance have weakened despite strong earnings. Chamath Palihapitiya called the paper 'money good and better than most sovereign debt' and expects most non-investment-grade borrowers to price at 10-12% in 2027.