$40 billion in bond issuance with a maximum interest rate of 8.3%! SpaceX (SPCX.US) AI gamble also exposes the “funding winter” for AI infrastructure

According to Golden Ten Data, media sources quoting insiders report that SpaceX (SPCX.US) is preparing to complete a debt issuance of $40 billion, with interest rates significantly higher than previous borrowing costs, reflecting growing investor concerns about funding for artificial intelligence (AI) infrastructure. According to people familiar with the matter, the riskiest tranche of this issuance is expected to yield around 8.3%, while a batch of debt secured by some of the company’s computing chips—considered relatively lower risk—may carry an interest rate of approximately 7.75%.

The debt issuance, arranged by Apollo (APO.US) and Goldman Sachs (GS.US), could be completed as early as next week. Lending costs are expected to be over one percentage point higher than the yield on SpaceX’s outstanding bonds; however, the final pricing is still subject to change.

For investors, higher financing costs highlight the risks associated with SpaceX’s ambitious AI expansion plans. As the company invests billions of dollars in building infrastructure, rising interest expenses may pressure its profitability and cash flow. The widening yield gap between existing debt and newly issued debt also indicates lenders are demanding greater returns to compensate for SpaceX’s financial risks.

SpaceX’s third-quarter results, released after Tuesday’s market close, validated its “burn-cash, monetize—closed loop” strategy for the first time. Data show that SpaceX’s Q3 revenue reached $14.575 billion, far exceeding the consensus analyst expectation of $12.72 billion, up 161% from $5.576 billion in the same period last year and about 87% higher than Q2’s $7.814 billion.

Third-quarter operating profit reached $2.791 billion, compared with an operating loss of $273 million a year ago and an operating loss of $143 million in Q2; net profit for Q3 was $4.404 billion, far above consensus forecasts of $1.57 to $1.88 billion, a dramatic improvement from last year’s net loss of $1.054 billion, marking a return to profitability. According to US GAAP, SpaceX’s Q3 diluted earnings per share were $0.35, also well outpacing the widely expected $0.15, with last year’s comparable figure being a loss of $0.36 per share.

The explosive growth of the Super Intelligence (SI) segment was a key reason SpaceX outperformed expectations in Q3. This business generated $7.56 billion in revenue, up 195% quarter-over-quarter and 830% year-over-year, about 20% above market expectations and accounting for roughly 52% of the company’s total revenue. For a company known for building rockets, more than half its income now comes from AI computing power and model services.

Meanwhile, SpaceX is accelerating its deployment of AI computing power. Elon Musk stated on the earnings call that it could add 10 gigawatts of AI computing power in 2027. The company is also ramping up capital expenditures—Q4 2026 capital spending is projected to reach $35–40 billion, about double Q3’s nearly $20 billion capital expenditure.

Despite better-than-expected quarterly results, SpaceX’s existing bonds have recently declined in value, as investors weigh its aggressive capital spending plans and increasing debt burden. The company is also exploring the possibility of a potential merger with Tesla (TSLA.US).

At the same time, the cost of credit default insurance for SpaceX's debt has also risen, further indicating deteriorating sentiment among credit investors. SpaceX’s financing comes at a time of overall weakness in the AI loan market—last week, bonds of AI cloud computing provider CoreWeave (CRWV.US) fell sharply due to mounting concerns about its reliance on debt-financed expansion; Meta Platforms (META.US) saw its credit risk hit a record high Thursday as plans for increased capital spending intensified worries about AI-related borrowing in the market.