Elon Musk has said SpaceX has secured $40 billion in debt financing to purchase artificial intelligence chips, as the company expands its AI computing infrastructure amid growing concerns over borrowing costs and investment returns in the sector.
In a post on X on Sunday, October 25, Musk said the financing would support purchases of graphics processing units (GPUs), which are used to train and operate advanced AI models.
He said the borrowing primarily comprised callable debt and would fund chips scheduled for delivery during the first and second quarters of 2027. The financing is not expected to have a significant impact on the company's current quarter.
Musk attributed SpaceX's access to financing to its investment-grade credit rating and revenue generated from its Starlink satellite internet and rocket launch businesses.
However, Bloomberg reported that discussions over the final pricing of the debt package were still ongoing as of Sunday, citing people familiar with the negotiations. The report indicated that the transaction had not yet been fully priced despite Musk's statement that financing had closed.
Earlier reports suggested that SpaceX was seeking approximately $40 billion to acquire Nvidia chips through a financing arrangement involving a special purpose vehicle.
The proposed structure would allow the company to raise funds outside its main balance sheet while seeking to preserve its investment-grade credit rating.
Goldman Sachs has reportedly been leading discussions with prospective investors, including Apollo Global Management, over the financing arrangement.
The development comes as SpaceX increases its involvement in AI infrastructure and cloud computing services.
The company's AI business, referred to as Super Intelligence, has expanded its operations to provide computing capacity to external customers, including AI developers and large technology companies.
According to reported third-quarter results, the business generated $7.56 billion in revenue, compared with $813 million during the corresponding period last year.
Alongside the financing announcement, Musk raised concerns about the financial position of specialised AI cloud providers, commonly known as neoclouds.
These companies supply computing infrastructure designed for AI workloads and frequently rely on substantial borrowing to finance expensive chips and data centres.
Musk said debt markets had become increasingly difficult for businesses without significant revenue streams outside AI infrastructure.
He predicted that more than 200 neocloud companies could face financial difficulties, failures or consolidation as financing conditions tighten.
He also ruled out the possibility of SpaceX acquiring struggling neocloud providers.
The developments come amid broader investor scrutiny of the substantial capital being committed to AI infrastructure, particularly as companies seek to balance expanding computing capacity with profitability and debt obligations.
For SpaceX, the proposed financing represents a significant investment in AI computing hardware, although the final terms and completion status of the transaction remain subject to clarification.
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