What SpaceX’s $40 Billion Nvidia Chip Plan Says About the AI Boom
Wall Street is turning chips and long-term compute contracts into financeable assets that could keep the AI buildout expanding
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There was a time you could only buy a house the hard way: with the full price in cash.
Homeownership belonged to people who already had money. Then banks learned they could treat a house itself as collateral, lend against it, and collect over 30 years. And suddenly, the biggest asset most families would ever own became financeable. The housing market we know today isn’t a product of lumber and land but of lending.
Wall Street is now running the same play on a new asset: AI hardware.
SpaceX (SPCX) is reportedly in talks for a $40 billion debt package to buy Nvidia (NVDA) chips – roughly $10 billion in bank loans and $30 billion in investment-grade debt. The discussions are preliminary and could still fall apart. But the sheer size of the ask rattled credit markets: SpaceX’s credit-default-swap spreads and bond risk premiums jumped on the news.
But SpaceX is one borrower in what’s quickly becoming a crowd. Broadcom (AVGO) is supposedly lining up more than $50 billion – with Apollo and Blackstone among the prospective lenders – to finance OpenAI’s custom chip buildout. Oracle (ORCL) is seeking outside capital for chip purchases. And CoreWeave (CRWV) – which had piled up about $52 billion in debt and lease obligations by June – is pursuing investment-grade ratings specifically so it can tap what one of its founders described as the nearly ‘unlimited’ capital held by life insurers.
The AI boom has outgrown the cash sitting on Big Tech’s balance sheets. So the financial system is building a new market around it.
That could matter almost as much as the chips themselves.
The AI Buildout Is Outgrowing the Cash-Funded Model
Every transformative buildout in history has hit the same wall: eventually, the project grows bigger than its builders’ wallets. What carries it over, every time, is fresh financial plumbing.
Railroads didn’t blanket the continent on railroad-company profits; they ran on railroad bonds. Homeownership spread on mortgages, not savings. Power plants, pipelines, and toll roads got their own mechanism – project finance – where lenders underwrite the asset and its contracted cash flows rather than the company that owns it.
AI compute is crossing that threshold right now. GPU-backed loans. Special-purpose vehicles. Residual-value guarantees. Private-credit packages. Insurer-funded, investment-grade debt. Piece by piece, Wall Street is learning to value the hardware, underwrite the contracts behind it, and finance the facilities around it.
Once Wall Street figures out how to lend against something, a whole lot more of that something gets built.
How AI Infrastructure Financing Turns Debt Into Purchase Orders
Underneath all that financial engineering, the money moves in a loop:
- Banks, insurers, and private-credit funds put up the capital.
- The operator – a SpaceX, a CoreWeave, an Oracle – buys chips and builds capacity.
- Long-term customer contracts for that capacity support the debt.
- And the suppliers – Nvidia, Broadcom, the memory makers, the networking vendors, the power-equipment companies – get paid up front, while the operator spends years working to earn an adequate return.
That fourth step is where the entire investment case lives: the borrowers carry the financing and utilization risk. The suppliers collect the orders first.
I’ll be honest about the risk side of this. Debt converts flexible spending into fixed obligations, and those widening SpaceX credit spreads are the market pricing exactly that. If AI capacity ultimately fails to generate the cash flows these loans assume, the pain won’t stay contained to the borrowers – it would eventually reach suppliers through weaker future orders.
But it’s a future risk, and the demand keeps pushing it further out. CoreWeave says most of its capacity is already sold through 2027. The contracts supporting these debt packages are being signed by customers who can’t get enough compute today. For now – and likely for years – the machine keeps converting borrowed money into purchase orders.
4 AI Infrastructure Stocks That Get Paid First
I’d keep the basket tight:
- Nvidia is the most direct beneficiary. Every one of these financing packages is a mechanism for turning someone else’s borrowed billions into Nvidia revenue. If SpaceX raises $40 billion for chips, Nvidia doesn’t carry the loan. It just books the sale.
- Broadcom gets paid twice: once on custom accelerators as more operators design their own silicon, then again on the networking that stitches all those financed chips into working clusters.
- Vertiv (VRT) turns chips into running systems. Every borrowed dollar that becomes a GPU still needs power delivery and cooling wrapped around it – and Vertiv sells both.
- Quanta Services (PWR) is where the money lands last and longest. Financed data centers eventually need substations, transmission, and grid connections, and Quanta’s $53 billion-plus backlog says that work is already arriving.
Apollo, Blackstone, KKR, and other alternative-asset managers are deeply involved in this ecosystem, too. But suppliers get paid first, in cash, regardless of how any individual loan performs.
The Bottom Line: Wall Street Is Becoming Part of the AI Supply Chain
A year ago, the question hanging over the AI trade was whether the spending could continue once the hyperscalers’ cash got tight.
We’re now learning that the buildout no longer has to rely on corporate cash alone. Wall Street is building the mortgage market that lets the buildout keep compounding, with insurers, banks, and private credit all learning to lend against chips and contracts.
Railroads got bonds. Houses got mortgages. AI is getting its own financing machinery – and once it exists, it doesn’t finance small plans.
That’s exactly why I keep pointing readers toward XPANSE.
Once the financing ecosystem exists, the capital goes hunting for the biggest project it can fund. I believe that project is the one Elon Musk is assembling across AI, robotics, energy, and space – what I call XPANSE. And the window where you can position before those dollars start moving is exactly the window we’re in now.
My free briefing gives you the full thesis, the three steps to take now, and the name and ticker of my favorite stock to play it.
In every lending boom, the safest seat belongs to whoever gets paid in cash, up front. These are the companies in that seat.
Watch the briefing and learn all about that free pick now.
