SpaceX closes $40 billion debt deal to buy AI chips, Musk says

Elon Musk says SpaceX has closed $40 billion in debt financing to purchase GPUs for artificial intelligence systems, CNBC reports. In posts on X, Musk said the financing, primarily callable debt, is expected to arrive in the first and second quarters of 2027, adding that SpaceX is investment grade with revenue from Starlink and its launch business. Bloomberg had earlier reported that SpaceX was in talks to raise $40 billion for Nvidia chips through a special purpose vehicle that would keep the debt off its balance sheet, with Goldman Sachs leading talks with investors including Apollo Global Management. SpaceX's AI push, which it calls Super Intelligence or SI, has become its largest business unit, with third-quarter segment revenue of $7.56 billion, up ninefold from $813 million a year earlier, per its latest earnings release. Musk also predicted that more than 200 neocloud companies - cloud providers built for AI workloads - face widespread failures and consolidation as debt financing tightens for firms without substantial revenue outside AI data centers.

DTT summary based on Mint's report. The full article is on the publisher's site.