The rocket and AI company is seeking $40 billion in financing to purchase more Nvidia chips, with Apollo Global Management and other banks involved in early talks. The deal could include $10 billion in bank loans and $30 billion in investment-grade debt. This follows SpaceX's $25 billion debt sale in June to fund its AI ambitions, which includes renting out compute power to companies like Google. Jim Cramer praised SpaceX's efforts, calling it a clear endorsement of Nvidia's chips. He noted that Musk's decision to use only Nvidia chips for SpaceX's AI projects aligns with Nvidia's strategy of selling compute power and then lending it out. Nvidia shares rose slightly after the announcement, despite a recent drop of less than 1% on Wednesday. The stock has been gaining momentum since Nvidia boosted its buyback program to $235 billion. Cramer has been advocating for an active buyback program to support the stock price.
Cramer's comments come as SpaceX continues to expand its AI capabilities, with plans to invest more in Nvidia's chips. He emphasized that Musk's decision to use only Nvidia chips is a strong endorsement of the company's technology. The deal highlights the growing importance of AI compute investments and the potential for companies to generate returns from these investments. Cramer's perspective underscores the confidence in Nvidia's position in the AI market.
Cramer's comments and the subsequent stock movement indicate that investors are taking notice of the potential returns from these investments.