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Musk says SpaceX has closed $40 billion of debt for GPUs and predicts failures among neocloud rivals
The callable debt funds chips due in the first half of 2027, while Musk said lenders have largely stopped funding data-centre firms without other revenue.
HedgeWeekly News Desk ·
SpaceX has closed $40 billion of debt financing to buy graphics processing units, Elon Musk said in a post on X on Sunday, according to Reuters. Musk described the borrowing as mainly callable debt for GPUs due to be delivered in the first and second quarters of 2027, and said it would not be a major factor this quarter. Reuters noted it was unclear what "closed" meant or whether pricing had been agreed.
Musk attributed SpaceX's access to the debt market to its investment-grade status and to revenue from Starlink and its launch business. Reuters reported earlier in October that the company was in talks with banks and asset managers to raise $40 billion for Nvidia AI chips. Chief financial officer Bret Johnsen expects fourth-quarter capital expenditure of $35 billion to $40 billion.
Musk also said debt markets have almost entirely cut off funding for companies that lack substantial revenue outside AI data centres, and predicted significant consolidation and failures among neocloud providers such as Nebius and CoreWeave. He later said SpaceX would not buy any neoclouds, calling the idea pointless. SpaceX reported third-quarter revenue up 161% from a year earlier at $14.58 billion, with AI revenue rising almost tenfold to $7.56 billion.
For credit and equity investors, the comments sharpen a split already visible in AI financing: borrowers with diversified cash flows can still raise large sums, while pure-play GPU lessors face tighter markets as investors bet against US neocloud and data-centre names. The next checkpoints are the final pricing and lender details of the SpaceX facility, the timing of its chip deliveries, and progress at Terafab, the SpaceX-Tesla chip venture in Austin that is due to produce a first test chip around May or June 2027.