Musk announced the financing on Sunday, saying SpaceX<\/a> was able to secure the money because of its investment-grade status and revenue generated outside AI through its Starlink satellite internet and rocket launch businesses.<\/p>\n “SpaceX closed $40B of debt for GPUs, but we’re investment grade and have Starlink & launch revenue,” Musk said.<\/p>\n Graphics processing units, or GPUs, are advanced chips that provide the computing power needed to train and operate AI systems.<\/p>\n ELON MUSK SAYS TESLA VEHICLE DEMAND EXCEEDING PRODUCTION AHEAD OF DALLAS CYBERCAB LAUNCH<\/a><\/p>\n Elon Musk said SpaceX closed $40 billion in debt financing to purchase advanced computer chips for its artificial intelligence operations. (Francis Chung\/Politico\/Bloomberg via Getty Images \/ Getty Images)<\/p>\n Reuters previously reported that SpaceX was in talks with banks and asset managers to raise $40 billion to purchase Nvidia<\/a> AI chips.<\/p>\n “This is primarily callable debt for GPU purchases that will arrive in Q1 and Q2,” Musk said in a follow-up post on X, confirming that the GPUs are expected to arrive in the first half of 2027. “Not a major factor this quarter.”<\/p>\n It was not immediately clear whether investors had agreed to the debt’s pricing terms.<\/p>\n The funding underscores the cost of the AI race, as companies spend heavily on advanced chips and other computing infrastructure.<\/p>\n UKRAINE REGAINS CRITICAL STARLINK SERVICE AFTER RESTRICTIONS DISRUPT DRONE OPERATIONS<\/a><\/p>\n SpaceX CEO Elon Musk announced a $40 billion financing deal Sunday, citing the company’s investment-grade status and revenue from Starlink and rocket launches. (Fabrice Coffrini \/ AFP via Getty Images \/ Getty Images)<\/p>\n SpaceX Chief Financial Officer Bret Johnsen said the company expects to spend $35 billion to $40 billion on capital expenditures in the fourth quarter alone, according to Reuters.<\/p>\n Musk also said borrowing conditions have deteriorated significantly for companies that rely heavily on AI infrastructure<\/a>.<\/p>\n Ticker Security Last Change Change % TSLA NO DATA AVAILABLE – – “As of the past few weeks, debt markets have almost entirely shut off access to money for any company that doesn’t have substantial revenue independent of AI data centers,” he said.<\/p>\n Musk warned that many of those companies could struggle to survive.<\/p>\n TRUMP PRAISES ELON MUSK AS A ‘GENIUS’ WHILE DEFENDING HIM AGAINST POTENTIAL DEMOCRATIC PROBES<\/a><\/p>\n Chief Technology Officer of X Elon Musk speaks at a conference on June 19, 2024 in Cannes, France.\u00a0 (Richard Bord\/WireImage \/ Getty Images)<\/p>\n “That means the 200+ neoclouds are going to see guppy-level death and consolidation,” Musk said, referring to companies that rent out computing power built primarily for AI customers. “Some will make it through, but not many.”<\/p>\n SpaceX’s established businesses, including Starlink and rocket launches, provide revenue streams outside its AI operations.<\/p>\n SpaceX’s third-quarter revenue climbed 161% from a year earlier to $14.58 billion, according to Reuters.<\/p>\n Musk suggested last week that a potential merger of Tesla<\/a> and SpaceX would be “a good idea.”<\/p>\n![\"Elon](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/10\/1793007853_358_elon-musk.jpg\")
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