{"id":72679,"date":"2026-10-06T19:08:12","date_gmt":"2026-10-06T23:08:12","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/spacex-eyes-40-billion-chip-deal-as-japanese-manufacturing-sentiment-hits-multi-year-highs\/72679\/"},"modified":"2026-10-06T19:08:12","modified_gmt":"2026-10-06T23:08:12","slug":"spacex-eyes-40-billion-chip-deal-as-japanese-manufacturing-sentiment-hits-multi-year-highs","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/spacex-eyes-40-billion-chip-deal-as-japanese-manufacturing-sentiment-hits-multi-year-highs\/72679\/","title":{"rendered":"SpaceX Eyes $40 Billion Chip Deal as Japanese Manufacturing Sentiment Hits Multi-Year Highs"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>SpaceX (<a href=\"\/stock\/SPCX\">SPCX<\/a>) is seeking to raise $40 billion<\/strong> in a massive financing round led by <strong>Apollo Global Management (<a href=\"\/stock\/APO\">APO<\/a>)<\/strong> specifically to acquire <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> semiconductors.<\/li>\n<li><strong>Japanese manufacturing sentiment<\/strong> rose to <strong>+22 in October<\/strong>, marking its highest level since late 2021, driven by robust global demand for AI-related equipment and electronics.<\/li>\n<li><strong>The Bank of Japan (BOJ)<\/strong> faces a mixed economic outlook as the <strong>Non-Manufacturers Index fell to +23<\/strong> from +29, suggesting a potential slowdown in domestic service-sector consumption.<\/li>\n<li><strong>SpaceX&#39;s financing structure<\/strong> reportedly includes <strong>$10 billion in bank loans<\/strong> and <strong>$30 billion in investment-grade debt<\/strong>, leveraging its recently secured <strong>BBB credit rating<\/strong>.<\/li>\n<\/ul>\n<h2>SpaceX Targets Massive AI Infrastructure Expansion<\/h2>\n<p>Elon Musk\u2019s <strong>SpaceX (<a href=\"\/stock\/SPCX\">SPCX<\/a>)<\/strong> is reportedly in talks to raise <strong>$40 billion<\/strong> to fund a blockbuster purchase of <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> chips. The financing effort, led by <strong>Apollo Global Management (<a href=\"\/stock\/APO\">APO<\/a>)<\/strong>, underscores the escalating capital requirements for AI infrastructure. According to reports from the <em>Financial Times<\/em>, the deal is expected to close in <strong>2027<\/strong> and will strengthen the strategic partnership between the rocket manufacturer and the world\u2019s leading AI chipmaker.<\/p>\n<p>The capital raise is structured to attract a broad base of institutional investors, including insurance and pension funds, thanks to SpaceX&#39;s <strong>BBB investment-grade rating<\/strong>. The company plans to split the funding between <strong>$10 billion in bank loans<\/strong> and <strong>$30 billion in high-grade debt<\/strong>. This move follows Musk&#39;s recent commitment to build exclusively on <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a>&#39;s <strong>Vera Rubin architecture<\/strong>, which he described as the premier platform for the group&#39;s expanding AI initiatives.<\/p>\n<h2>Japan&#39;s Manufacturing Sector Buoyed by Global AI Demand<\/h2>\n<p>In Japan, the <strong>Reuters Tankan Manufacturers Index<\/strong> edged up to <strong>+22 in October<\/strong>, surpassing the previous month&#39;s reading of +21. This continued optimism is largely attributed to the &quot;ripple effect&quot; of global artificial intelligence demand, which has bolstered Japanese suppliers of semiconductor-making equipment and electronic components. The manufacturing sector has now seen sentiment improve for <strong>six consecutive quarters<\/strong>, reaching levels not seen since 2018.<\/p>\n<p>However, the broader economic picture remains &quot;patchy&quot; as the <strong>Non-Manufacturers Index<\/strong> saw a significant decline, falling to <strong>+23 from +29<\/strong>. Analysts suggest that rising costs for raw materials and labor are beginning to weigh on service-sector profits, while domestic consumption for durable goods remains lackluster. This divergence between strong export-oriented manufacturing and a cooling service sector may complicate the <strong>Bank of Japan&#39;s<\/strong> path toward further interest rate hikes in the fourth quarter.<\/p>\n<h2>Market Outlook and Future Projections<\/h2>\n<p>Looking ahead, Japanese manufacturers remain optimistic, with the <strong>January Manufacturers Index<\/strong> projected to rise further to <strong>+23<\/strong>. In contrast, the service sector&#39;s outlook is more cautious, with the non-manufacturing gauge expected to stabilize around <strong>+21<\/strong>. The <strong>BOJ<\/strong> will likely monitor these figures closely as it balances the need to combat inflation against the risk of stifling a fragile domestic recovery.<\/p>\n<p>In the private markets, the <strong>SpaceX<\/strong> deal is being viewed as a bellwether for investor appetite for AI-related debt. With <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> already holding a multi-billion dollar stake in SpaceX, the two companies are increasingly intertwined. As SpaceX ramps up its Starlink and Starship programs, the integration of advanced AI computing is expected to become a core pillar of its long-term aerospace and connectivity strategy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways SpaceX (SPCX) is seeking to raise $40 billion in a massive financing round led by Apollo Global Management 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