SpaceX executed the largest IPO in history when it sold over $85 billion in shares. Now, just four months later, it's reportedly looking to raise $40 billion in debt — financing that would rank among the largest tied to the world's nearly $2 trillion AI buildout.

Why it matters: Rising rates haven't curtailed hyperscalers' appetites, despite debt bubble concerns voiced today by Ray Dalio, Axios' Dan Primack writes.

💸 Driving the news: SpaceX is seeking the $40 billion to buy Nvidia chips, per multiple reports.

• The package would include around $30 billion in investment-grade debt and another $10 billion in bank loans.
• The talks were characterized by Bloomberg as "early stage."

Between the lines: Elon Musk's ambitions for SpaceX are enormous. He told investors in August that the company is aiming to have 15 gigawatts of computing capacity online through various projects by the end of next year.

• And he's betting entirely on Nvidia to fill that capacity, saying SpaceX will build "exclusively" on Nvidia's chips and expects to receive a "very significant percent" of Nvidia's GPUs next year.

💳 The big picture: A recent analysis of the world's AI buildout puts estimated infrastructure investment through 2032 at $10.3 trillion, Axios' Courtenay Brown reported.

• And the AI boom has become far too big and too costly for even the largest tech companies to finance alone, she noted, resulting in trillions of dollars in demand for outside capital.

Follow the money: The biggest chipmakers have jumped in to help keep the spending train running.

• Last week, Bloomberg reported that banks were in the market to raise $60 billion to finance Broadcom-powered AI equipment for Anthropic and other companies, with Broadcom backstopping $42 billion of the financing.
• Nvidia has struck similar financing partnerships, aimed at creating more than $500 billion in third-party capital to buy its infrastructure, while providing some guarantees.

🔭 What we're watching: How much more appetite investors have to shoulder the risks of the ever-growing debt load backing AI data centers and chips.

• There are already signs of unease: The cost to insure SpaceX's debt against default hit a record high today, FT notes.

Jon Rahm is exiting LIV Golf after deeming the league's reinvention plan "unacceptable," an attorney for the Spanish star confirmed this morning.

Why it matters: Rahm's departure marks a significant blow to the effort to create "LIV 2.0" after the league filed for Chapter 11 bankruptcy protection in September.

🗣️ Zoom in: Rahm rejected the league's proposal to launch a second version of LIV and so "he will not be participating going forward" in the league, his attorney, John Beck, said today during a bankruptcy court hearing.

• Rahm is engaged in "advanced discussions for a consensual separation agreement" with a goal of reaching a deal by Oct. 15, Beck said.

💰 The big picture: Rahm was among the highest-profile PGA stars lured by LIV with lucrative deals that included guaranteed payouts and huge tournament prize pools.

• When it filed for bankruptcy, the league said it hoped to maintain its star players under new deals.

💻 Microsoft's new Surface Laptop Ultra, which contains an Nvidia AI chip, will start at $2,599. The laptop allows users to run large AI models directly on the device. (Axios)

📺 Disney said this year's Super Bowl — airing on ESPN and ABC — will also stream on Disney+. (ESPN)

💸 Fed officials worried that higher costs tied to energy, AI investment and other shocks could spill over into broader, more persistent inflation, according to minutes from its Sept. 15-16 meeting. (Axios)

Shipping a new candle from Etsy is one thing — but sending sensitive parts from an F-35 stealth fighter requires close attention to detail, Axios' Pete Gannon writes.

• UPS shares slipped around 1% this afternoon following a report that a shipment — described by Bloomberg as "an F-35 cockpit canopy and weapons-bay door coated in radar-absorbing material" — fell into China's hands after an employee missed an email with instructions to avoid shipment through Hong Kong.

Zoom in: The email, per Bloomberg, which cited a person briefed on the incident, came from freight forwarder DSV on behalf of manufacturer Lockheed Martin.

Reality check: It isn't clear whether UPS is to blame for the incident. The same person told Bloomberg that the email "may have been sent through a different IT system than the one used by the UPS agent."

• UPS didn't immediately respond to Axios' request for comment and declined to comment to Bloomberg. DSV also declined to comment to Bloomberg.