SpaceX Considers $40 Billion Spend on Nvidia Chips

Elon Musk is setting sights on a massive hardware footprint for his AI ambitions. Bloomberg reported that SpaceX is exploring an allocation of up to $40 billion toward high-end compute and hardware partnerships, with Nvidia chips squarely in focus. Parallel reports noted Intel CEO Lip-Bu Tan reaffirming his company's ongoing partnership with Musk on the specialized Terafab chip venture, even as Musk holds exploratory discussions with Taiwan Semiconductor Manufacturing Co. to secure sufficient advanced packaging capacity. The sheer scale of the hardware race continues to collide with broader macro plumbing. As computing commitments climb into multi-billion-dollar territory, funding strains and energy bottlenecks are forcing operators to lock down dedicated baseload generation and immense capital lines. While sovereign debt yields eased slightly off multi-decade highs, the appetite for raw compute remains untouched by elevated borrowing costs. While hardware allocations dominate the headlines, the dealer books underneath the risk complex show distinct paths. U.S. equities remain cushioned in stabilizing territory. On our desk, SPY is parked at 779.89, holding safely above its gamma flip at 772.28 with a call wall sitting at 782. QQQ sits at 759.8, boxed below its 762 call wall while dealers remain long gamma above 752.87. That positioning keeps index moves muffled, forcing market makers into dip-buying and rally-selling modes that drain intraday volatility. The crypto tape took the sharper hit. Bitcoin briefly dropped below the $84,000 mark overnight, touched by regional tensions and energy moves that sparked $487 million in crypto long liquidations, according to The Block and CoinDesk. On our crypto book, BTC sits at 84,248 with net GEX negative at -12.9 million. Dealers holding short gamma accelerate selloffs as they hedge lower, leaving the tape far more exposed to spot swings than the equity board. The divergence is clear: while mega-cap AI spenders keep equity dealers locked in long-gamma insulation, digital assets are absorbing leverage cleanouts with market makers actively leaning into downside momentum.