EA-driven SpaceX bond plan for AI infrastructure erases $600bn in value

The three-day, US$600 billion drawdown in SpaceX’s market value underscores just how sensitive public markets have become to the capital intensity of AI infrastructure bets. Raising at least US$20 billion in bonds to fund AI infrastructure inherited from xAI signals that Musk’s AI ambitions are not a side project but a core pillar of the broader Musk industrial complex. But it also crystallizes investor anxiety: if even one of the world’s most valuable private companies needs that much debt to stay competitive on compute, smaller players will either consolidate, specialize, or die. ([mettisglobal.news](https://mettisglobal.news/SpaceX-loses-600bn-in-threeday-rout-61355))

For the AGI race, this is a reality check on the “infinite capital” narrative. Building and operating frontier‑class data centers is pushing even large firms toward more aggressive leverage, intertwining AI trajectories with macro credit conditions and bond investor risk appetite. If markets grow wary of AI infrastructure debt, the cost of capital for high-end compute could rise sharply, favoring cash‑rich hyperscalers and state-backed entities. Conversely, if SpaceX successfully places the bonds and demonstrates AI revenue streams that justify them, it will validate debt-financed AI megaprojecs as a template others can copy. Either way, the episode shows that the path to AGI isn’t just a research problem; it’s bound up with how much balance-sheet risk investors will tolerate for AI bets.