SpaceX closes $40 billion debt deal for AI chips, Elon Musk says

SpaceX has closed $40 billion in debt financing to buy graphics processing units, or GPUs, used to power artificial intelligence systems.

In a post on X on Sunday, SpaceX CEO Elon Musk said it had closed the financing, adding that the company was investment grade and generated revenue from its Starlink satellite internet and rocket launch businesses.

In a follow-up post, he added that the financing primarily consisted of callable debt for graphics processing units, which are expected to arrive in the first and second quarters of 2027.

In a regulatory filing Monday, SpaceX said it signed a binding commitment with an Apollo-managed entity for roughly $40 billion in GPU financing.

The financing underscores the AI boom's enormous capital requirements, as technology companies pour billions of dollars into advanced chips and data centers to support increasingly powerful AI models.

SpaceX has expanded aggressively into artificial intelligence this year, referring to the business as "Super Intelligence," or SI.

The segment has become the company's largest business unit, with third-quarter revenue surging ninefold to $7.56 billion from $813 million a year earlier, according to its latest earnings release.

Musk also said that debt markets have largely shut off access to financing for companies without substantial revenue outside AI data centers.

He predicted that more than 200 so-called neocloud companies, which provide cloud computing infrastructure designed for AI and machine-learning workloads, would face widespread failures and consolidation, with only a small number surviving.