SpaceX (SPCX) Closes $40 Billion Debt Deal for GPU Purchases

The $40 Billion GPU Borrowing

SpaceX (SPCX) has closed a $40 billion debt financing to fund purchases of GPUs, the processors that run large artificial-intelligence systems, with chief executive Elon Musk confirming the completed raise in a post on X early on October 26. Musk wrote that SpaceX could borrow on these terms because it is investment grade and collects revenue from Starlink internet service and rocket launches, businesses that do not depend on AI data centers. The announcement followed roughly a week of market chatter about exactly such a raise: earlier reporting had described talks between the company, banks and asset managers over $40 billion for Nvidia AI chips, structured through a special-purpose vehicle so the debt would stay off SpaceX's balance sheet and the credit rating would hold, with Goldman Sachs negotiating the structure with investors including Apollo. Musk's posts do not state whether the final structure matched that plan. A follow-up post roughly 40 minutes later added that the borrowing is mostly callable debt, meaning the company can repay it ahead of schedule, and that the outlays would have little effect on the current quarter.

@elonmusk · X post

In a post on X.

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On timing, Musk indicated the facilities cover GPU deliveries expected in the first and second quarters, a schedule that places the hardware in the first half of 2027. SpaceX has filed nothing with the SEC about the financing so far. The chief executive also set a boundary on who can still borrow: over the past few weeks, he wrote, debt markets have almost entirely shut off money for any company without substantial revenue independent of AI data centers. That is where the scale of the spending shows: building large AI chip clusters runs into the tens of billions of dollars, and lenders now treat revenue diversity rather than data-center projections as the test. Firms with strong credit and varied income can still borrow; companies whose entire business rests on AI infrastructure face a market that has turned selective.

Over 200 Neoclouds, Few Survivors

Palihapitiya had posted his warning shortly before the announcement, writing that many neoclouds appear poorly funded and badly run. Drawing on his experience holding land with grid connections already in place, he argued that Amazon, Microsoft and Google are moving slowly on deals and prefer to keep computing capacity for their own use. Construction delays, he wrote, could leave large numbers of chips idle or stuck in half-finished projects that fail to cover their financing costs in 2027, a year he expected to clear out bad bets and reward a handful of survivors. Musk replied that the description was roughly right and went further: more than 200 neoclouds, the newer companies that rent out AI computing power, will die off and consolidate like guppies, with some surviving but not many. A day earlier he had said he expects plenty of compute to end up trapped inside half-built data centers.

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Had posted his warning.

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The raise also shows how large AI has grown inside SpaceX itself. The company's Super Intelligence division, the AI business it scaled aggressively this year, is now its largest unit by revenue: third-quarter revenue rose about ninefold year over year, from $813 million to $7.56 billion. The financing lands at a sensitive moment for the wider trade. Worry over the payoff from massive AI spending has weighed on AI-linked stocks and the broader market, with Nasdaq futures near 29,080, well off levels above 30,000 earlier in the month, and Bitcoin last changing hands near $79,400. Musk framed the two revenue streams, Starlink subscriptions and launch contracts, as the cash flows that let an AI builder of this size keep its rating. The posts set up a field of competitors with little revenue beyond data-center rentals against an incumbent that does not need the GPU business to stay solvent.

COINOTAG data shows SpaceX (SPCX) trading at $148.04, up 0.06% over the past 24 hours, inside a range of $147.11 to $149.72, so the completed raise has so far done little to break the stock's daily downtrend. Our composite scoring places the strongest support at $146.28, rated 100 out of 100, with the first resistance at $150.14, rated 90 out of 100; with the relative strength index at 44.8 and a bearish MACD signal, the daily picture stays tilted lower. A daily close above $150.14 would be the first sign the financing is changing how the market prices SpaceX, while a loss of $146.28 would hand the initiative back to sellers.