SpaceX closes $40 billion debt deal for AI chips, Elon Musk says

Elon Musk said SpaceX has closed $40 billion in debt financing to purchase 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 satellite internet and rocket launch businesses.

In a follow-up post , he added that the financing, primarily consisted of callable debt for graphics processing units, is expected to arrive in the first and second quarters of 2027.

Bloomberg reported earlier, citing people familiar with the matter, that SpaceX was in talks with banks and investors to raise $40 billion to purchase Nvidia chips.

The proposed financing would use a special purpose vehicle to keep the 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, over the financing structure, according to Bloomberg.

The financing underscores the enormous capital requirements of the AI boom, as technology companies pour billions of dollars into advanced chips and data centers to support increasingly powerful AI models.

SpaceX has expanded aggressively 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 surging ninefold to $7.56 billion from $813 million a year earlier, according to its latest earnings release.

Musk also said that debt markets have largely shut off access to financing for companies without substantial revenue outside AI data centers.

He predicted that more than 200 so-called neocloud companies, which provide cloud computing infrastructure specifically designed for artificial intelligence and machine learning workloads, would face widespread failures and consolidation, with only a small number surviving.