Elon Musk's SpaceX has launched a maiden bond offering, potentially for USD20 billion, to fund its AI ambitions. The move comes after its successful Nasdaq debut and the USD60 billion acquisition of AI startup Cursor to bolster its AI stack.
SpaceX is seeking more funds to power its AI ambitions as the Elon Musk-led rocket-to-AI company has launched an offering of senior unsecured notes, according to a Reuters report. The maiden bond offering by the newly-listed company could be for an amount as much as USD20 billion, according to some reports. The company also disclosed that it has cash and cash equivalents worth USD100.8 billion, the Reuters report said.
Bond Offering Follows Strong Market Debut
SpaceX shares debuted on Nasdaq on June 12 at an issue price of USD135 and quickly gaining traction as investors piled into the stock to partake in Musk's massive AI ambitions.
An earlier Reuters report said that the money raised from the maiden bond offering could be used to refinance the loan that was taken earlier this year after the merging of Musk's AI company xAI with SpaceX in February.
SpaceX, worth more than USD2 trillion, is one of the most valued US companies even as it surpassed Amazon and Microsoft briefly in the first few days of trading on the back of massive interest among buyers.
The shares have pared some gains in last few sessions as initial enthusiasm is tempered as investors wrap their head around its stratospheric valuations.
Navigating the AI Arms Race
Musk, who has made no bones about his spectacular AI ambitions, will face tough competition from rivals as the AI buildout sees massive capital spending by Google parent Alphabet, Amazon and Microsoft.
The race for compute is cash guzzling and the capital spending could run into trillions of dollars in times to come.
SpaceX has plans to take the data centre fight to the space with ambitions to make orbital compute capacities that would harness solar energy for the massive power demand.
Strengthening AI Stack with Cursor Acquisition
Shortly after listing of SpaceX shares, the company made a big AI bet by acquiring Cursor for USD60 billion in an all-stock deal. The AI startup shot to fame with its coding tool that lets software developers generate, edit and review code.
The Cursor acquisition add another layer to the AI capacity that SpaceX has as it vertically integrates to strengthen its presence across the entire AI stack. (ANI)
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)