Musk says SpaceX closed a $40 billion debt deal to buy AI chips

Elon Musk said on October 25 that SpaceX had closed a $40 billion debt deal to buy graphics processing units, the chips used for artificial-intelligence work, according to MarketWatch.

In posts on X, Musk said SpaceX's investment-grade credit rating and its mix of revenue from rockets and the Starlink satellite business allowed it to borrow at a time when lenders have turned cautious on AI. He said the borrowing is primarily callable debt and that the chips would arrive in the first and second quarters, so the arrangement would not be a significant factor in the current quarter.

SpaceX has been expanding a so-called neocloud business, renting access to chips to companies that need AI processing capacity. Musk said debt markets have largely closed to companies without meaningful revenue outside AI data centers, and predicted consolidation and failures among more than 200 neocloud operators. He added that SpaceX would not buy any of them.

Investor concern has centered on neocloud companies such as CoreWeave, which has funded growth with borrowed money and whose bonds have come under pressure.

SpaceX and CoreWeave did not immediately respond to requests for comment, MarketWatch reported.

This story was first reported by Longbridge.