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

SpaceX has secured $40 billion in debt financing to purchase graphics processing units for artificial intelligence systems, according to CNBC. The company's chief executive announced the closing on Sunday, noting that the business is investment grade and generates revenue from its satellite internet and launch operations. A follow-up statement indicated the debt is callable and the chips are slated for delivery in the first half of 2027. A regulatory filing confirmed a binding commitment with an Apollo-managed entity for the financing.

The deal highlights the massive capital needs of the AI boom. SpaceX has rapidly expanded its AI division, labeled Super Intelligence, which became its largest unit with third-quarter revenue jumping ninefold to $7.56 billion. The chief executive also warned that debt markets are largely closed to firms lacking substantial non-AI revenue and predicted widespread failures among neocloud providers, with only a few surviving.

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