Investing.com– Elon Musk said SpaceX (NASDAQ:SPCX) had closed $40 billion in debt financing to buy artificial intelligence chips, warning that more than 200 specialised cloud computing providers face widespread failures and consolidation as credit markets tighten.
“Debt markets have almost entirely shut off access to money for any company that doesn’t have substantial revenue independent of AI data centers,” Musk said in a post on X on Sunday.
SpaceX shares rose 1.1% in premarket trading Monday by 05:50 ET (09:50 GMT).
SpaceX had secured the financing because it has investment-grade credit and revenue from its Starlink satellite internet and rocket launch businesses, he said, contrasting its position with that of neocloud providers that rely heavily on renting computing capacity to AI developers.
Musk said the debt would primarily fund graphics processing units (GPUs) expected to arrive in the first and second quarters of 2027.
The financing follows reports earlier this month that SpaceX was seeking $40 billion to buy Nvidia chips.
The warning comes as investors grow increasingly concerned about debt-funded AI infrastructure spending and uncertain returns.
Neocloud providers, including CoreWeave (NASDAQ:CRWV) and Nebius (NASDAQ:NBIS), specialise in supplying computing capacity for AI workloads, leaving them exposed to financing costs and demand uncertainty as they expand.
CoreWeave and Nebius fell more than 2% each in premarket trading.
Vahid Karaahmetovic contributed to this report.
Original Article
Musk says SpaceX raised $40 billion in debt, warns of neocloud collapse
EQT to acquire Range Resources in $50 billion all-stock deal
Goldman Sachs sees 60% KOSPI upside despite cutting target to 9,000