Musk Says SpaceX Completes $40 Billion Debt Financing to Purchase Nvidia AI Chips
Musk said SpaceX has completed $40 billion in debt financing, mainly to purchase Nvidia GPUs to be delivered in the first and second quarters of next year, most of which is callable debt. He also predicted that the neocloud industry will face large-scale consolidation or even bankruptcy, and that SpaceX will not acquire any neocloud companies. SpaceX expects fourth-quarter capital expenditure to be between $35 billion and $40 billion; revenue for the three months ended September 30 rose 161% year over year to $14.58 billion, of which AI revenue grew nearly 10-fold to $7.56 billion.
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Musk disclosed that SpaceX is using $40 billion in debt financing to purchase Nvidia GPUs, and predicted that the neocloud industry will consolidate; readers can use this to observe changes in the AI compute funding chain.
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Beijing time, the 26th: SpaceX CEO Elon Musk said that his company SpaceX has completed $40 billion in debt financing to purchase Nvidia chips needed to develop its artificial intelligence (AI) business. Musk also predicted that the "neocloud" industry will undergo a shakeout, with companies in the sector facing large-scale consolidation or even bankruptcy, and that SpaceX will not acquire any "neocloud" companies.
In a post on X, Musk said the debt financing was successfully completed thanks to the company's investment-grade credit rating and the revenue generated by its Starlink satellite internet business and rocket launch business. He added: "This debt is mainly used to purchase GPUs to be delivered in the first and second quarters of next year, and most of it is callable debt, with little impact on this quarter."
According to SpaceX Chief Financial Officer Bret Johnsen, the company expects fourth-quarter capital expenditures to be between $35 billion and $40 billion.
Reuters reported earlier this month that SpaceX was in talks with banks and asset management companies to raise $40 billion to purchase Nvidia AI chips. This highlights the enormous funding demands created by the AI boom: tech companies are racing to snap up advanced processors and build the computing infrastructure needed to support AI development.
Musk said that for companies lacking a substantial revenue source independent of AI data centers, the debt market has "almost completely closed its financing channels." As a result, he predicted that "neocloud" companies will face large-scale consolidation and bankruptcy. He also said SpaceX will not acquire any "neocloud" companies, calling doing so "meaningless."
Unlike large cloud providers that serve a wide range of industries, "neocloud" companies such as Nebius and CoreWeave mainly serve technology clients, providing computing power specially customized for AI technology.
Relevant data shows that in the three months ended September 30, SpaceX's revenue grew 161% year over year to $14.58 billion; among that, AI revenue surged nearly tenfold to $7.56 billion, indicating that SpaceX's massive investment in the AI field is paying off.
This shift is reshaping the company: for a long time, its financial engine has been the Starlink satellite internet business, while its longer-term goals still depend on the Starship rocket entering routine operation.
Terafab, the chip manufacturing joint venture between SpaceX and Tesla in Austin, is expected to produce its first batch of test chips around May or June next year, with the goal of achieving mass production by the third quarter of 2028.
Musk said at an investor conference call last week that merging his two companies "is a good idea," citing the growing overlap between their businesses.
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