Elon Musk’s net worth dropped by more than $21 billion on Wednesday after SpaceX shares fell about 2%, according to Forbes. The decline followed reports that SpaceX is negotiating with banks and asset managers to raise $40 billion to fund the purchase of Nvidia artificial intelligence chips. Despite the loss, Musk remains the world’s richest person with a net worth of $1.03 trillion, per Forbes’ Real Time Billionaires list.
SpaceX shares traded at $168.86, down roughly 2%, after news of the company’s plans to raise billions for AI chip acquisitions. The company’s credit risk surged to a new high, with five-year credit default swaps rising 16.7 basis points to around 197.6 basis points, reflecting growing investor concern. Sal Naro, chief investment officer at Coherence Credit Strategies, described the AI-related debt supply as unprecedented and larger than historical infrastructure builds like railroads, emphasizing its global scale.
The $40 billion debt plan would rank among the largest-ever financings for artificial intelligence infrastructure. SpaceX’s move highlights the growing capital demands in the AI sector, as companies seek to secure advanced chips to maintain competitive advantages. The surge in credit risk and bond weakening signals investor caution amid the scale of SpaceX’s planned borrowing, illustrating the financial pressures accompanying rapid AI expansion.
SpaceX’s credit default swaps reached around 197.6 basis points on Wednesday, marking a fresh high in the company’s credit risk. The company’s efforts to raise $40 billion for Nvidia AI chips underline the scale of investment required in the AI infrastructure race, as detailed by Bloomberg News and reported by livemint.com.