Nvidia, Oracle, and Now SpaceX Are Borrowing Billions Amid the AI Boom. Is This a Warning Sign?
A record rush to raise cash is bankrolling the AI build-out. But the companies tapping the market aren't all in the same financial shape.
Nvidia, Oracle, and Now SpaceX Are Borrowing Billions Amid the AI Boom. Is This a Warning Sign?
Overview
Wall Street has found a new way to bet on artificial intelligence (AI): lending money to the companies building it. Over the past few weeks, Nvidia (NASDAQ: NVDA) sold $25 billion of bonds, Oracle (NYSE: ORCL) laid out a plan to raise as much as $50 billion this year, and Amazon (NASDAQ: AMZN) has now borrowed more than $80 billion since the start of 2025 as AI infrastructure spending drives a broader financing rush. Nvidia's deal drew more than $85 billion in orders, over three times what the company was selling.
Now Elon Musk's SpaceX (NASDAQ: SPCX) wants in. Bankers are reportedly preparing a bond offering of at least $20 billion, coming just weeks after the rocket and satellite company's record-setting initial public offering (IPO).
Details
So is all this borrowing a sign of confident, cash-rich companies funding the future -- or the kind of leverage that tends to surface right before trouble?
Source
Originally published at www.fool.com.
