SpaceX explores bond sale to raise $20 billion

Summary

CNBC's Seema Mody reports that SpaceX is exploring a $20 billion bond sale after receiving investment-grade credit ratings, with potential pricing as early as tomorrow. The proceeds would fund AI chips and the Grok large language model. Mody notes strong investor interest in AI infrastructure plays and highlights the poor post-IPO performance of stocks that pop on day one. Host Kelly Evans flags weakness in software and a pullback in SpaceX's private share price.

• SpaceX is exploring a $20 billion bond sale after S&P, Moody's, and Fitch assigned investment-grade ratings.
• The bond sale could price as early as tomorrow, with management- investor calls underway.
• Funds would go toward AI-related investments including chips and the Grok LLM.
• Seema Mody says timing is favorable due to high investor appetite for AI infrastructure exposure.
• Mody warns that high-profile IPOs with big first-day pops tend to underperform over the next 3-6 months.
• SpaceX private stock has fallen from $225 to $165, down about 25% from recent highs.
• Software sector is weak, with the IGV ETF off 13% for the month.