SpaceX reportedly nears $40 billion debt deal at rates above 8% for AI expansion

SpaceX is reportedly finalizing a $40 billion debt financing at interest rates above 8%, substantially higher than the rocket maker paid the last time it borrowed from bondholders; the report does not confirm that the financing has closed.^[1]

A separate report links the financing to a multiyear AI infrastructure buildout and says SpaceX is targeting up to 3 gigawatts of computing capacity by the end of 2026; gigawatts measure power and indicate the scale of those computing facilities.^[2]

If completed, the financing would give SpaceX funds for AI facilities, creating potential orders for computing equipment, power equipment and construction services. Assuming the entire $40 billion carries an annual rate above 8%, interest alone would exceed $3.2 billion a year before principal repayments; its computing-rental business therefore needs enough cash to support both financing costs and continued construction.^[2][1]

The 10-year US Treasury yield, an important reference for borrowing costs, stood at 5.00% on October 23, up from 4.96% the previous session but below 5.09% on October 16. SpaceX's reported increase in borrowing costs also puts its own financing terms in focus; the deal offers investors a reference for assessing other debt-funded AI projects, while leaving peers' actual borrowing rates uncertain.^[1]

Impact

What to watch next

• October 28 Fed rate decision: watch whether the policy rate and outlook shift longer-term borrowing costs and the financing backdrop for AI construction.
• Year-end 2026: assess progress against the reported target of up to 3 gigawatts of computing capacity to see whether the financed buildout translates into capacity available to rent.^[2]