Spacex's (Nasdaq: SPCX) $40Bn Nvidia (Nasdaq: NVDA) Chip Deal Exposes AI's Dangerous Money Loop
SpaceX's (Nasdaq: SPCX ) talks to borrow $40 billion to buy Nvidia (Nasdaq: NVDA) chips lay bare a dangerous loop at the heart of the AI boom, with the industry's biggest supplier bankrolling the very customers who buy its products and global investors left carrying the risk, warns the CEO ofdeVere Group, one of the world's largest independent financial advisory organisations.
The comments from Nigel Green come as Elon Musk's rocket and AI conglomerate reportedly seeks around $10 billion in bank loans and $30 billion in investment-grade debt, in what would rank among the biggest debt financings of the entire AI buildout, while a separate Wall Street syndicate gathers a further $60 billion of AI chip financing.
AdvertisementFilings show Nvidia holds just under 123 million SpaceX shares, worth close to $21 billion at the end of June.
Since 2024 the chipmaker has pledged more than $100 billion to AI companies, and it's pulling together a Wall Street consortium to provide over $500 billion of financing for its own customers, partially guaranteeing loans backed by the value of its chips.
SpaceX, meanwhile, lost $4.28 billion in the first quarter of this year on revenue of $4.69 billion.
Big tech is on course to spend roughly $700 billion on capital projects this year, with around three quarters going into AI infrastructure.
Much of that hardware is being depreciated over five to six years, while critics argue its genuine economic life is closer to two or three. One estimate puts the resulting understatement of costs at around $176 billion between 2026 and 2028.
The funding itself is changing shape, with analysts projecting around $300 billion of investment-grade bonds for AI data centres this year alone.
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