SpaceX Kicks Off Debut High-Grade Bond Sale
Speakers
Ed Ludlow
— Co-Host, Bloomberg Technology
Summary
Ed Ludlow discusses SpaceX's first investment-grade bond sale, used to refinance existing debt despite a massive cash pile, and a major natural gas power deal between Microsoft and Chevron to supply AI data center energy in West Texas.
- SpaceX confirms over $100 billion in cash but issues inaugural investment-grade bonds primarily to refinance debt and manage future aggressive spending.
- SpaceX has dramatically reduced its borrowing costs from more than 12% to around 4% and is viewed as a rising star.
- Microsoft is ramping up a 2.6 GW natural gas power project in West Texas to support its doubling data center footprint, starting in 2028.
- The deal highlights Microsoft's shift away from prior renewable energy procurement commitments toward natural gas for AI infrastructure.
- Chevron is directly linked to the project and stands to benefit from the massive power generation demand.
- The natural gas angle is described as a huge, under-hyped story relative to the excitement around SpaceX.
Ideas
Natural gas powers AI, Chevron benefits
Microsoft is doubling its data center footprint and has walked back renewable energy commitments. A massive 2.6 GW natural gas power deal in West Texas, starting in 2028, will use natural gas as the energy source. This directly benefits Chevron as the powerhouse behind the project.
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