‘The Big Money Show’ panel discusses SpaceX reporting 161% revenue increase as Elon Musk addresses potential merger with Tesla. Elon Musk said SpaceX has closed $40 billion in debt financing to buy graphics processing units for its artificial intelligence operations, highlighting the huge sums being spent in the race to develop AI computing capacity. Musk announced the funding on Sunday, saying SpaceX was able to secure the money thanks to its investment-grade status and revenue generated outside of AI through its Starlink satellite internet and rocket launch businesses. “SpaceX closed $40 billion of GPU debt, but we are investment grade and we have Starlink and launch revenue,” Musk said. Graphics processing units, or GPUs, are advanced chips that provide the computing power needed to train and operate artificial intelligence systems. ELON MUSK SAYS DEMAND FOR TESLA VEHICLES EXCEEDS PRODUCTION AHEAD OF CYBERCAB LAUNCH IN DALLAS Elon Musk said SpaceX closed $40 billion in debt financing to buy advanced computer chips for its artificial intelligence operations. (Francis Chung/Politico/Bloomberg via Getty Images/Getty Images) Reuters previously reported that SpaceX was in talks with banks and asset managers to raise $40 billion to buy AI chips from Nvidia. “This is primarily debt due for GPU purchases that will arrive in the first and second quarters,” Musk said in a follow-up post on X, confirming that the GPUs are expected to arrive in the first half of 2027. “Not a major factor this quarter.” Investors had agreed to pricing terms for the debt. The funding underscores the cost of the AI race, as companies spend heavily on advanced chips and other computing infrastructure. UKRAINE RECOVERS CRITICAL STARLINK SERVICE AFTER RESTRICTIONS DISRUPT DRONE OPERATIONS SpaceX CEO Elon Musk announced a $40 billion financing deal on Sunday, citing the company’s investment-grade status and revenue from Starlink and rocket launches. (Fabrice Coffrini/AFP via Getty Images/Getty Images) SpaceX Chief Financial Officer Bret Johnsen said the company expects to spend between $35 billion and $40 billion on capital spending in the fourth quarter alone, according to Reuters. Musk also said that borrowing conditions have deteriorated significantly for companies that rely heavily on AI infrastructure. Ticker Security Last Change Change % TSLA NO DATA AVAILABLE – – – “As of the last few weeks, the debt markets have almost completely closed off access to money “For any company that does not have substantial revenue regardless of AI data centers,” he said. Musk warned that many of those companies could struggle to survive. TRUMP PRAISES ELON MUSK AS A ‘GENIUS’ WHILE DEFENDING HIM AGAINST POTENTIAL PROBES DEMOCRATIC of SpaceX, including Starlink and rocket launches, provide revenue streams outside of its AI operations. SpaceX’s third-quarter revenue rose 161% from a year earlier to $14.58 billion, according to Reuters. Musk suggested last week that a potential merger of Tesla and SpaceX would be “a good idea.”
