Oracle’s Huge Bond Sale, Musk Eyes SpaceX and xAI Combo - bloomberg-technology Recap

Podcast: bloomberg-technology

Published: 2026-02-02

Duration: 43 minutes

Guests: Felix Chillette, Daniel Payne

Summary

Disney's parks division bolsters its earnings despite a weak growth outlook, while Oracle aims to raise $45-50 billion for cloud infrastructure. Elon Musk is negotiating a merger of SpaceX with xAI.

What Happened

Disney reported record sales in its parks division, reaching $10 billion for the first time, which significantly boosted its earnings. Despite these gains, the company's shares are declining due to concerns over the tepid growth outlook and rising costs associated with international visitors.

Oracle is embarking on a massive bond sale, planning to raise $45-50 billion through a combination of debt and equity to expand its cloud infrastructure. This move is expected to result in negative free cash flow for several years, but the company intends to maintain its investment-grade status.

Elon Musk is in advanced discussions to merge SpaceX with xAI, a potential combination of two major privately held companies. This merger could align SpaceX's capabilities with xAI's objectives, possibly leading to new innovations.

The U.S. government is making a strategic move to reduce reliance on Chinese rare earths by planning a $12 billion stockpile, which includes $1.6 billion from the private sector and $10 billion from the US Export-Import Bank. This effort aims to diversify supply sources and stabilize global prices.

AI investments are under scrutiny as they need to show significant returns by 2026 to justify their high valuations. This puts pressure on companies to deliver substantial productivity gains from these technologies.

Tesla's European sales are facing challenges, with notable declines in countries like France and Norway. This slump raises questions about the company's market strategy in the region.

Nvidia CEO Jensen Huang clarified that a proposed $100 billion investment in OpenAI was never a firm commitment. This statement sheds light on the complex funding landscape surrounding AI advancements.

Key Insights

• Disney's parks division achieved record sales of $10 billion, marking the first time it has reached this milestone. Despite this success, the company's shares are declining due to concerns over growth outlook and rising costs for international visitors.
• Oracle is planning a significant bond sale to raise $45-50 billion for expanding its cloud infrastructure. This strategy is expected to result in negative free cash flow for several years, while the company aims to maintain its investment-grade status.
• The U.S. government is initiating a $12 billion stockpile to reduce reliance on Chinese rare earths, with $1.6 billion from the private sector and $10 billion from the US Export-Import Bank. This move seeks to diversify supply sources and stabilize global prices.
• Nvidia CEO Jensen Huang clarified that the proposed $100 billion investment in OpenAI was never a firm commitment. This highlights the complex funding landscape surrounding AI advancements.