Musk says SpaceX closed $40 billion debt deal for GPUs
Bloomberg reported pricing talks were still underway late on October 25, as Musk said lenders have all but shut off money for most neoclouds.
In brief
- Elon Musk said on X on October 25 that SpaceX closed $40 billion of debt to buy GPUs
- Bloomberg reported pricing talks on the SpaceX deal were still underway late on October 25
- Musk predicted most of the 200-plus neoclouds will fail or consolidate
Elon Musk said in a post on X on October 25 that SpaceX had closed $40 billion of debt to buy graphics processors, while Bloomberg reported talks over the deal's pricing were still underway.
The money would pay for chips for SpaceX's artificial intelligence business, now its largest unit. Musk also used the announcement to argue that lenders have turned away from neoclouds, companies that rent out clusters of Nvidia chips for AI training and inference.
“SpaceX closed $40B of debt for GPUs, but we’re investment grade and have Starlink & launch revenue,” Musk wrote. In a follow-up post, he said the financing consisted primarily of callable debt, meaning the borrower can repay it before maturity.
People with knowledge of the discussions told Bloomberg that, as of late on October 25 in New York, the talks were continuing and the deal had not priced, according to Bloomberg's report. The parties were still working to finalize the debt package in the coming days, those people said.
In an earlier report, Bloomberg said SpaceX was in talks with banks and investors to raise $40 billion to buy Nvidia chips through a special purpose vehicle, a separate entity that keeps debt off a company's balance sheet. The structure was meant to preserve SpaceX's investment-grade credit ratings, and Goldman Sachs was leading talks with investors including Apollo Global Management, Bloomberg reported.
Musk wrote that in the past few weeks debt markets have almost entirely shut off access to money for companies without substantial revenue independent of AI data centers. He predicted that “the 200+ neoclouds are going to see guppy-level death and consolidation,” adding that some would survive, but not many. The group includes CoreWeave, a US provider of rented Nvidia chip clusters.
SpaceX has expanded into artificial intelligence this year and calls the business Super Intelligence, or SI. The unit's third-quarter revenue rose ninefold to $7.56 billion from $813 million a year earlier, according to the company's latest earnings release.
Musk said the financing is expected to arrive in the first and second quarters of 2027.