Elon Musk said on Sunday that SpaceX
had closed $40 billion in debt financing for graphics
processing units, underscoring the soaring cost of building AI
computing capacity.
Musk, in a post on X, attributed the successful debt raise
to the company’s investment-grade status and revenue from its
Starlink satellite internet and launch businesses.
It was not immediately clear from Musk’s post what he meant
by the deal being “closed” or whether investors had agreed to
pricing for the debt.
“This is primarily callable debt for GPU purchases that will
arrive in Q1 and Q2. Not a major factor this quarter,” Musk said
in the post.
For the fourth quarter, the company expects $35 billion to
$40 billion in capital expenditure, according to Chief Financial
Officer Bret Johnsen.
Reuters reported earlier this month that SpaceX was in talks
with banks and asset managers to raise $40 billion for the
purchase of Nvidia artificial intelligence chips.
The funding highlights the enormous capital requirement of
the AI boom, as technology companies race to secure advanced
processors and build out the computing infrastructure needed to
support AI development.
Musk said debt markets “have almost entirely shut off access
to money for any company that doesn’t have substantial revenue
independent of AI data centers.”
As a result, he predicted neocloud companies would face
significant consolidation and failures, and later said SpaceX
won’t buy any neoclouds, calling it “pointless.”
Unlike larger cloud firms that serve a broad range of
industries, neoclouds such as Nebius and CoreWeave
mostly focus on tech customers and offer capacity
tailored for AI technology.
Investors have started betting against US neocloud and data
center companies, after fears that their debt-fueled AI buildout
was becoming unsustainable sparked a selloff.
SpaceX’s revenue climbed 161 per cent from a year ago to $14.58
billion for the three months ended September 30. AI revenue
surged by almost 10 times to $7.56 billion, the clearest
evidence yet that SpaceX’s heavy investment in AI was paying
off.
The shift is reshaping a company whose financial engine has
long been its Starlink satellite internet services business and
whose longer-term ambitions still hinge on getting Starship
rockets into regular service.
Terafab, the chip manufacturing joint venture between
SpaceX and Tesla in Austin, should produce its first
test chip around May or June of next year as it aims to reach
volume production by the third quarter of 2028.
Musk told investors in a conference call last week that a
merger of his two companies would be “a good idea,” citing
growing overlap between them.
Prior to its blockbuster IPO, SpaceX listed “manufacturing
our own GPUs” among the substantial capital expenditures it is
undertaking in its S-1 statement, warning prospective investors
of its big spending plans to develop AI and other technologies.
Published on October 26, 2026
