SpaceX has closed $40 billion in debt financing to buy graphics processing units, or GPUs, according to CEO Elon Musk. These chips are used to power artificial intelligence systems.
Musk shared the news in a post on X on Sunday. He said the company was investment grade and earned revenue from its Starlink satellite internet and rocket launch businesses.
In a follow-up post, Musk said the financing was mainly callable debt for GPUs. He said the chips are expected to arrive in the first and second quarters of 2027.
How the Financing Came Together
Bloomberg reported earlier, citing people familiar with the matter, that SpaceX was in talks with banks and investors to raise $40 billion. The money was meant to buy chips from Nvidia.
According to Bloomberg, the proposed financing would use a special purpose vehicle. This structure would keep the debt off SpaceX’s balance sheet and help protect the company’s investment-grade credit ratings.
Goldman Sachs was leading talks with investors over the structure of the deal, Bloomberg said. Apollo Global Management was among the investors involved in those discussions.
Bloomberg also reported that turmoil in financial markets had made the talks more difficult. Musk’s posts on Sunday indicated that the deal has now been completed.
SpaceX shares were trading slightly higher, up about 0.5%, according to CNBC market data. Musk also serves as the CEO of Tesla.
SpaceX’s Growing AI Business
SpaceX has expanded quickly into artificial intelligence this year. The company refers to this business as “Super Intelligence,” or SI.
The AI segment is now the company’s largest business unit. Third-quarter revenue from the unit rose ninefold to $7.56 billion, up from $813 million a year earlier, according to the company’s latest earnings release.
SpaceX also continues to earn money from Starlink and its rocket launch services. Musk pointed to these businesses when describing the company’s credit standing in his post.
Musk also commented on the wider debt market. He said lenders have largely stopped offering financing to companies that lack substantial revenue outside of AI data centers.
He pointed to so-called neocloud companies. These firms provide cloud computing infrastructure built specifically for artificial intelligence and machine learning workloads.
Musk predicted that more than 200 neocloud companies would face widespread failures and consolidation. He said only a small number of them would survive.
His posts did not name the specific lenders behind the final deal. Bloomberg’s earlier reporting had named Goldman Sachs and Apollo as parties in the talks.
According to Musk’s latest post, the GPUs paid for with the $40 billion are expected to be delivered in the first half of 2027.
