{"id":3306,"date":"2026-10-26T11:03:44","date_gmt":"2026-10-26T06:03:44","guid":{"rendered":"https:\/\/ipp-news.com\/?p=3306"},"modified":"2026-10-26T11:03:44","modified_gmt":"2026-10-26T06:03:44","slug":"musk-says-spacex-raised-40-billion-in-debt-deal-predicts-neocloud-shakeout","status":"publish","type":"post","link":"https:\/\/ipp-news.com\/?p=3306","title":{"rendered":"Musk says SpaceX raised $40 billion in debt deal, predicts neocloud shakeout"},"content":{"rendered":"
\n

Elon Musk said on Sunday that SpaceX \u200bhad closed $40 billion in debt financing for graphics processing units, underscoring the soaring cost of building \u200cAI computing capacity.<\/strong><\/p>\n

Musk, in a post on X, attributed the successful debt raise to the company\u2019s investment-grade status and revenue from its Starlink satellite internet and launch businesses.<\/p>\n

It was not immediately clear from Musk\u2019s post what he meant by the deal being \u201cclosed\u201d or whether investors \u200bhad agreed to pricing for the debt.<\/p>\n

\u201cThis is primarily callable debt for GPU purchases that will arrive in \u200bQ1 and Q2. Not a major factor this quarter,\u201d Musk said in the post.<\/p>\n

For the \u2060fourth quarter, the company expects $35 billion to $40 billion in capital expenditure, according to Chief Financial Officer Bret Johnsen.<\/p>\n

Reuters reported<\/a> earlier \u200bthis month that SpaceX was in talks with banks and asset managers to raise $40 billion for the purchase of Nvidia artificial intelligence chips.<\/p>\n

The funding highlights the enormous capital requirement of the AI boom, as technology companies race to secure advanced processors and build out the computing infrastructure needed to support AI development.<\/p>\n

Musk said debt markets \u201chave almost entirely shut off access to money for any company \u200bthat doesn\u2019t have substantial revenue independent of AI data centres.\u201d<\/p>\n

As a result, he predicted neocloud companies would face significant consolidation \u200band failures, and later said SpaceX won\u2019t buy any neoclouds, calling it \u201cpointless.\u201d<\/p>\n

Unlike larger cloud firms that serve a broad range of industries, \u200cneoclouds such as Nebius and CoreWeave mostly focus on tech customers and offer capacity tailored for AI technology.<\/p>\n

Investors have started betting against<\/a> US neocloud and data centre companies, after fears that their debt-fueled AI buildout was becoming unsustainable sparked a selloff.<\/p>\n

<\/a>AI investment, chip manufacturing<\/strong><\/h3>\n

SpaceX\u2019s revenue climbed<\/a> 161% from a year ago to $14.58 billion for the three months ended September 30. AI revenue surged \u200bby almost 10 times to $7.56 \u200bbillion, the clearest evidence \u2060yet that SpaceX\u2019s heavy investment in AI was paying off.<\/p>\n

The shift is reshaping a company whose financial engine has long been its Starlink satellite internet services business and whose longer-term \u200bambitions still hinge on getting Starship rockets into regular service.<\/p>\n

Terafab, the chip manufacturing joint \u200bventure between SpaceX \u2060and Tesla in Austin, should produce its first test chip around May or June of next year as it aims to reach volume production by the third quarter of 2028.<\/p>\n

Musk told investors in a conference call last week that a merger of \u2060his two \u200bcompanies would be \u201ca good idea,\u201d citing growing overlap between them.<\/p>\n

Prior to \u200bits blockbuster IPO, SpaceX listed<\/a> \u201cmanufacturing our own GPUs\u201d among the substantial capital expenditures it is undertaking in its S-1 statement, warning prospective investors of its big \u200bspending plans to develop AI and other technologies.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Elon Musk said on Sunday that SpaceX \u200bhad closed $40 billion in debt financing for graphics processing units, underscoring the soaring cost of building \u200cAI computing capacity. Musk, in a post on X, attributed the successful debt raise to the company\u2019s investment-grade status and revenue from its Starlink satellite internet and launch businesses. It was not immediately clear from Musk\u2019s post what he meant by the deal being \u201cclosed\u201d or whether investors \u200bhad agreed to pricing for the debt. \u201cThis is primarily callable debt for GPU purchases that will arrive…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-3306","post","type-post","status-publish","format-standard","hentry","category-english"],"gutentor_comment":0,"_links":{"self":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/3306","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3306"}],"version-history":[{"count":0,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/3306\/revisions"}],"wp:attachment":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3306"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3306"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3306"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}