It looks like they're taking on $20B in debt to clean up xAI's debt, and then paying it off with the equity raise? Do you feel that's very significant for them? 1% dilution takes care of it.
Right but the word "capex" isn't a magical amulet that makes balance of payments and cash flow problems disappear. Plenty of companies have been wrecked by overextending on capital spending.
Yeah, for sure, but it's also usually something that's a bit easier to trim when needed, unless they got way ahead of themselves and went deep into debt to do it. Most public companies have much worse debt:equity ratios.