
AI-generated summary
The AI boom is leading to increased capital requirements for tech companies to purchase advanced processors and build computing capacity. In addition to SpaceX, Elon Musk also heads the AI company xAI and had previously announced that he would increase the use of Nvidia chips.
Austin. According to a media report, Elon Musk's space company SpaceX wants to raise $40 billion to buy AI chips from technology leader Nvidia. The company led by Elon Musk wants to raise around $10 billion in bank loans and $30 billion through bonds, the “Financial Times” reported on Tuesday, citing several insiders.
The financing is led by the asset manager Apollo. The bond investor Pimco is also involved in the discussions. The transaction is expected to be completed in 2027. Statements from the companies mentioned were not initially available; Pimco declined to comment.
The project underlines the enormous capital requirements of the boom in artificial intelligence (AI). Tech companies are racing to find advanced processors and build the necessary computing capacity. Musk, who also heads the AI company xAI, announced last month that he wanted to massively increase the number of chips used by Nvidia.
AI outlook — possibilities, not facts
SpaceX will complete funding by 2027 and begin purchasing Nvidia AI chips in bulk.
Likely · Within years

The China shock has a double impact on the German economy: cheap imports are flooding markets and the Chinese market is becoming unattractive for European companies. The German car industry in particular is suffering, while VW, BMW, Mercedes, Audi and Porsche together recorded a 27 percent decline in sales in China.

The flood of cheap Chinese products in Europe and the simultaneous collapse of German companies' business in China are presenting companies with a fundamental economic turning point, as the Handelsblatt article shows.

Rising oil prices due to tensions between Saudi Arabia and Iran-backed Houthi rebels in Yemen and a storm in the Gulf of Mexico weighed on Asian stock markets on Wednesday. The Nikkei index fell 0.9 percent while Brent oil prices rose to $101.40 a barrel. Investors are waiting for minutes from the Fed's latest meeting for clues on future rate moves.
According to a media report, SpaceX wants to raise $40 billion to buy AI chips from Nvidia. The financing is expected to consist of $10 billion in bank loans and $30 billion in bonds, led by Apollo, with participation from Pimco. Completion is expected in 2027.

In the last six years, the German economy only grew by an average of 0.2 percent annually, with this increase being solely due to government spending. Private investment and consumption contributed nothing to growth, while state funding for the armed forces, climate protection and infrastructure supported growth. Companies' reluctance to invest, triggered by the pandemic, supply chain problems and geopolitical uncertainties, weakens production potential and prosperity in the long term.
The engine manufacturer Deutz is planning to cut 130 to 200 jobs at the main plant in Cologne by the end of 2028, in the worst case scenario up to 300 jobs. The business with small engines for tractors and pallet trucks is affected, while the defense division was strengthened by the takeover of FFG.