[SpaceX's $40 Billion Off-Balance-Sheet Debt Financing Under Pressure from AI Market Volatility] BlockBeats reported on October 24th, citing Bloomberg and sources familiar with the matter, that SpaceX is discussing a $40 billion off-balance-sheet debt financing plan to purchase Nvidia chips through a special purpose vehicle (SPV) to support its AI business expansion. This structure aims to prevent the debt from being included on SpaceX's balance sheet and maintain its investment-grade rating. However, recent market volatility in the AI sector has driven up industry borrowing costs, complicating pricing negotiations. A group of banks led by Goldman Sachs is discussing a plan with investors led by Apollo, with the proposed entity, Atlas SP, backed by Apollo, to manage the financing. Pimco is also considering participation. Previously, yields on some subordinated debt were discussed in the middle of the 8% to 9% range, but recent volatility has prompted investors to reassess pricing, and negotiations are ongoing. SpaceX's earnings report this week also revealed that last year, xAI attempted to raise up to $20 billion in off-balance-sheet debt through a sale-leaseback arrangement with Valor Equity Partners, but auditors deemed it a "failed sale-leaseback arrangement," and SpaceX ultimately recorded approximately $13 billion of it as its own debt. The proposed structure aims to avoid a repeat of this situation. [Original Link]