SpaceX Plans to Take on $40 Billion in New Debt. Here’s Why Investors Should Get Used to This
Space Exploration Technologies Corp (NASDAQ:SPCX) may be known to many investors as a rocket company, but its largest opportunities are related to artificial intelligence (AI). In its S-1 filing, which detailed its risks and opportunities, it was AI that made up the lion’s share of its total addressable market — $26.5 trillion, versus $370 billion for space.
As a result, the company, which more commonly goes by just SpaceX, needs to invest heavily not only in space but also in AI. The company is reportedly in talks to raise $40 billion in debt to buy GPUs from chipmaker Nvidia. It’s a costly move, but one that’s needed in order for the company to develop its AI capabilities. It’s also something investors should get used to.
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