Oracle’s Huge Bond Sale, Musk Eyes SpaceX and xAI Combo | Bloomberg Tech 2/2/2026

Oracle Corp. has announced plans to raise up to $50 billion in a combination of debt and equity to finance its massive artificial intelligence infrastructure buildout, signaling the software giant’s determination to compete with hyperscalers. Simultaneously, reports indicate that Elon Musk is in advanced discussions to merge his aerospace company, SpaceX, with his artificial intelligence venture, xAI, a move that could consolidate two of the world’s most valuable private companies ahead of a potential public offering.

Key Points

• Oracle Financing: The company is seeking $45–$50 billion via bonds and equity to fund data center expansion while protecting its investment-grade rating.
• Musk Merger Talks: Elon Musk is reportedly exploring a combination of SpaceX (valued at approx. $800 billion) and xAI to leverage shared resources and potential orbital data centers.
• Disney Turmoil: Shares have dipped following a tepid outlook for park attendance, with the board expected to vote on Josh D’Amaro as Bob Iger’s successor this week.
• Strategic Resources: The U.S. government is launching a $12 billion stockpile program for critical minerals to reduce reliance on foreign supply chains.
• AI Capital Expenditure: Nvidia CEO Jensen Huang confirmed the company will make its "largest investment ever" in OpenAI, though he dispelled rumors of a $100 billion commitment.

Oracle and the Race for AI Infrastructure

In a move that underscores the capital-intensive nature of the current artificial intelligence boom, Oracle has initiated a massive fundraising effort. The company is tapping capital markets for nearly $50 billion to fuel the construction of data centers required to run next-generation AI models. Notably, the financing structure includes a significant equity component alongside debt issuance.

Market analysts reacted positively to the news, sending Oracle shares up 2.5% in early trading. The decision to issue equity is seen as a strategic maneuver to preserve the company's investment-grade credit rating, addressing investor concerns regarding leverage ratios.

"It underscores how Oracle has become this poster child of all the AI financing fears. It’s expected to be negative free cash flow for the next couple of years as it builds massive data centers... They essentially were trying to respond to these concerns and say that no, we have a solid plan."

This capital injection is part of a broader industry trend where tech giants are utilizing off-balance-sheet borrowing and special purpose vehicles (SPVs) to manage the projected $3 trillion cost of global data center buildouts. These financial structures allow companies to secure funding for specific projects—such as GPU financing or construction loans—without directly impacting their primary balance sheets.

Musk Eyes Consolidation of SpaceX and xAI

Sources familiar with the matter report that Elon Musk is in advanced talks to combine SpaceX with xAI. The merger would bring together the dominant aerospace manufacturer, recently valued at approximately $800 billion, with Musk's rapidly growing AI concern.

The strategic rationale extends beyond simple financial consolidation. Industry observers suggest the merger could facilitate futuristic infrastructure projects, such as orbital data centers, which would require the launch capabilities of SpaceX and the computational modeling of xAI. While SpaceX is expected to pursue a public listing later this year, the inclusion of xAI could alter the valuation dynamics significantly.

The structure of the deal remains opaque, with discussions reportedly happening behind the scenes without the traditional independent board committees seen in public company mergers.

Disney’s Leadership Vote and Parks Slowdown

The Walt Disney Company faces a pivotal week as its board of directors meets to vote on a successor to CEO Bob Iger. Current expectations favor Josh D’Amaro, the head of Disney’s Parks, Experiences, and Products division. The leadership transition comes at a precarious moment; despite strong earnings in streaming, the company issued a cautious outlook for its theme parks business, citing rising costs and volatility in international tourism.

Investors responded negatively to the guidance, driving shares lower. The concern centers on whether the parks division—historically a primary profit engine—is seeing a structural slowdown in attendance following a post-pandemic boom.

"The parks outlook for this quarter is not as good coming off of a strong quarter... There could be nervousness with investors by doing the same thing once again, putting the head of the experience, parks, cruise lines, gaming, at the charge of the company."

Policy Shift: U.S. Strategic Mineral Stockpile

The Biden administration is set to launch a $12 billion program to stockpile critical minerals and rare earth elements, a first-of-its-kind initiative for the U.S. private sector. The Export-Import Bank will contribute $10 billion to the fund, with the private sector adding $1.67 billion.

This "Strategic Digital Economy Reserve" aims to insulate U.S. technology and automotive manufacturers from supply chain disruptions and price volatility, specifically reducing dependence on Chinese exports. The move follows export controls imposed by China in previous years that highlighted vulnerabilities in the supply chain for EV batteries, wind turbines, and defense technologies.

Market Sentiment: Crypto and Tech Earnings

In the broader markets, cryptocurrency assets remain under pressure. Bitcoin has stabilized around $78,000–$79,000 following a weekend selloff, but sentiment remains bearish. Exchange volumes have dropped, and related equities, such as digital asset treasury companies, are trading near their cost basis, reflecting investor caution regarding risk assets.

Attention is now shifting to upcoming tech earnings, with Palantir, Alphabet, and Amazon set to report. Investors are scrutinizing capital expenditures, looking for concrete evidence that massive AI spending is translating into productivity gains and revenue.

Regarding the relationship between hardware providers and model developers, Nvidia CEO Jensen Huang clarified the scope of the company’s financial relationship with OpenAI over the weekend. While Huang confirmed that Nvidia would make a significant capital commitment, he explicitly denied rumors that the investment would approach $100 billion.

"We will invest a great deal of money. Probably the largest investment we have ever made... [But] no, no, no. Nothing like that [$100 billion]."

What’s Next

The market will be watching the outcome of Disney's board vote closely this week, as well as the details of Oracle's bond pricing. Additionally, earnings reports from Palantir and Amazon are expected to act as a litmus test for the sustainability of current AI valuations, potentially setting the tone for the technology sector through the remainder of the first quarter.