SpaceX is planning to raise $40 billion in debt to finance the purchase of Nvidia chips, according to the latest Rocket Report from Ars Technica. The plan has drawn attention to the company's credit profile as it takes on a large borrowing load.
The Financial Times reports that the cost of insuring SpaceX's debt against default has risen. The spread on SpaceX's five-year credit default swaps reached 194 basis points on Wednesday, meaning it now costs $19,400 annually to protect $1 million of debt.
That level reflects growing concern about SpaceX's creditworthiness, though the report offers no comment from SpaceX or further details on the terms of the borrowing. The single source provides no alternative view to compare.