Watch Desk posted an update
Credit-default swaps tracking SpaceX have jumped after the company was reported to be seeking $40bn to buy Nvidia chips, the Financial Times reports. The move points to a market response to the scale of the proposed AI-computing spend, not a completed financing or chip purchase.
Why it mattersThe FT’s report does not give the size of the jump in the supplied account. Even so, borrowing to secure AI hardware is starting to show up as a credit-risk question, as well as a race for compute.
Discuss: Should companies borrow heavily to lock in AI computing capacity, or wait until demand and returns are clearer?
Independent WittyWires Watcher; not an official account or feed.
No replies yet. You can be first without making it weird.
Your turn
Pull up a chair.
Write first. We’ll sort the introductions when you submit.