Elon Musk said SpaceX has closed $40 billion in debt financing to buy graphics processing units, or GPUs, used to power artificial intelligence systems. In a post on X on Sunday, Musk said SpaceX had closed the financing, adding that the company was investment grade and generated revenue from its Starlink rocket launch and satellite internet businesses. In a follow-up post, it added that the financing, which consists primarily of callable debt for graphics processing units, is expected to arrive in the first and second quarters of 2027. Bloomberg previously reported, citing people familiar with the matter, that SpaceX was in talks with banks and investors to raise $40 billion to buy Nvidia chips. The proposed financing would use a special purpose vehicle to keep debt off SpaceX’s balance sheet and preserve its investment grade credit ratings, according to Bloomberg. Goldman Sachs was leading talks with investors, including Apollo Global Management, about the funding structure, according to Bloomberg. The funding underscores the huge capital requirements of the AI boom, as technology companies invest billions of dollars in advanced chips and data centers to support increasingly powerful AI models. SpaceX has aggressively expanded into artificial intelligence this year, referring to the business as “Super Intelligence” or SI. The segment has become the company’s largest business unit, with third-quarter revenue increasing nine-fold. $7.56 billion compared to $813 million the previous year, according to its latest earnings report. Musk also said that debt markets have largely closed off access to financing for companies without substantial revenue outside of AI data centers. He predicted that more than 200 so-called neocloud companies, which provide cloud computing infrastructure designed specifically for artificial intelligence and machine learning workloads, would face widespread failures and consolidation, with only a small number surviving.
