SpaceX's $40 billion off-balance-sheet debt financing is affected by turbulence in the AI market, with pricing negotiations under pressure.

BlockBeats news, October 24 - According to Bloomberg citing people familiar with the matter, SpaceX is discussing a $40 billion off-balance-sheet debt financing plan, intending to purchase Nvidia chips through a special purpose vehicle to support AI business expansion. The structure aims to keep the related liabilities off SpaceX's own balance sheet and maintain its investment-grade rating. However, recent market turmoil in the AI sector has driven up industry borrowing costs, complicating pricing negotiations.

Banks led by Goldman Sachs are in discussions with investors led by Apollo on a plan under which Apollo-backed Atlas SP would manage the entity, with Pimco also considering participation. Previously, yield discussions for some subordinated debt were in the middle of the 8% to 9% range, but recent volatility has prompted investors to reassess pricing, and the two sides are still negotiating.

SpaceX's earnings report this week also disclosed that last year xAI attempted to raise up to $20 billion in off-balance-sheet debt through a sale-leaseback arrangement with Valor Equity Partners, but auditors deemed it a "failed sale-leaseback arrangement," and SpaceX ultimately recorded about $13 billion of it as its own debt. The proposed structure this time aims to avoid a repeat of the above situation.