Nvidia, Oracle, and Now SpaceX Are Borrowing Billions Amid the AI Boom. Is This a Warning Sign? - The Globe and Mail

Amid the AI boom, major tech companies are launching a wave of massive financing activities. NVIDIA's recent $25 billion bond offering attracted over $85 billion in orders, far exceeding initial expec... Read original →

The AI financing frenzy is reshaping the semiconductor ecosystem: NVIDIA’s $25B bond isn’t about liquidity—it’s a strategic lock on 3nm and EUV capacity at TSMC (Taiwan, China) and ASML through 2027. Yet SpaceX’s entry into this debt wave injects systemic risk; if AI infrastructure demand softens, highly leveraged players face existential pressure. Tightening U.S. export controls and CHIPS Act delays have already inflated compliance costs by 15–20%, forcing preemptive capex. Over the next 12–24 months, the sector will bifurcate: cash-rich giants like Amazon and Oracle will vertically integrate, while weaker balance sheets invite consolidation. Microsoft and Meta are now recalibrating their AI capex in response—this is no longer just a build-out race, but a battle for infrastructure pricing dominance.