SpaceX is planning to issue investment grade bonds for the first time, kicking off a new round of "AI burn money showdown".

After completing a record-breaking $75 billion IPO, SpaceX (SPCX.US) has issued investment-grade bonds for the first time, which could mark the beginning of a large-scale debt issuance to raise funds for its artificial intelligence (AI) business layout. SpaceX stated in the documents that it has initiated the issuance of its first senior unsecured bonds, and "the specific issuance will depend on market conditions and other factors." The documents added that these bonds are unsecured bonds of SpaceX, with a repayment priority equivalent to all current and future non-subordinated debts, liabilities, and other payment obligations of the company. Earlier reports from the media indicated that Elon Musk's rocket, satellite, and AI giant SpaceX plans to raise at least $20 billion through this bond issuance. The funds raised will be used to replace similar-sized short-term bridge loans. As of March 31st, this loan accounted for the majority of the company's $29.1 billion in long-term debt. Sources revealed that Bank of America Corp, Citigroup, JPMorgan, Goldman Sachs Group, Inc., and Morgan Stanley jointly provided this bridge loan and will lead the underwriting of this bond issuance. It was also disclosed that SpaceX has instructed these banks to arrange communication meetings with investors on Monday. Last week, SpaceX received investment grade bond ratings from three major rating agencies, paving the way for lower financing costs. Moody's Corporation and Fitch rated SpaceX's debt as Baa1 and BBB+, respectively, three notches above junk status. S&P Global, Inc. gave a slightly lower BBB rating. Moody's Corporation stated, "SpaceX's Baa1 issuer rating reflects the company's excellent operational strength as the world's leading provider of orbital launch services and the largest operator of the low Earth orbit satellite broadband network Starlink." However, the agency cautioned, "The company's significant investment in AI infrastructure brings extremely high project execution risk and financial risk, which suppresses this rating; the intensive capital expenditures and consistent negative free cash flow of the related business pose a significant uncertainty for commercial realization." In pre-market trading on Monday, SpaceX fell by 4.52% to $176.642.