Elon Musk confirms $40 billion SpaceX debt deal for AI chips, warns of neocloud shakeout
Source: CoinDesk ·
From the source
SpaceX has raised $40 billion in debt to buy GPUs, while Musk predicts a major shakeout among smaller AI cloud providers. Nasdaq-listed SpaceX has raised $40 billion in debt to buy GPUs, the powerful processors used to run artificial-intelligence systems. Elon Musk announced that on X with a warning for neoclouds, or companies whose revenues depend almost entirely on data centers. The $40 billion deal is mainly callable debt , meaning SpaceX can repay it early. The money could be used to pay for GPU deliveries expected in the first half of 2027, though Musk did not explicitly say so. Reuters previously reported that SpaceX was negotiating with banks and asset managers to raise $40 billion to buy Nvidia AI chips. Musk said SpaceX could borrow the money because it has a strong credit rating and steady revenue from Starlink internet service and rocket launches. Those businesses do not depend on AI data centers, making it easier for SpaceX to secure chip financing than for companies that…