SpaceX closes $40 billion debt deal for GPU purchases

Elon Musk said on Oct. 25 that SpaceX secured $40 billion in debt to fund graphics processing unit purchases, according to posts on X reported by Reuters and Fortune India; Reuters published its story at 8:05 p.m. UTC.

SpaceX will use the money to buy GPUs for AI data centers from Nvidia and other suppliers, SiliconANGLE reported. Musk said the debt is primarily callable and tied to GPU purchases that will arrive in the first and second quarters. "This is primarily callable debt for GPU purchases that will arrive in Q1 and Q2. Not a major factor this quarter," he wrote in a post on X.

SpaceX could borrow because it is investment grade and generates revenue from Starlink satellite internet and launch services, Musk said. "SpaceX closed $40B of debt for GPUs, but we're investment grade and have Starlink & launch revenue," he posted.

Musk said that, in the past few weeks, credit has become nearly impossible to get for firms without substantial revenue beyond AI data centers. Neoclouds, which rent specialized GPU capacity for AI tasks, will be hit hardest, he predicted. "200+ neoclouds are going to see guppy-level death and consolidation. Some will make it through, but not many," he wrote.

Fortune India said Bloomberg earlier reported that SpaceX's effort to complete the $40 billion financing had been disrupted by market volatility and higher borrowing costs. According to that report, the planned arrangement would have used a special-purpose vehicle to buy Nvidia chips and keep the debt off SpaceX's books. SiliconANGLE, citing the Financial Times, said Apollo Global Management was the lead investor, with roughly $10 billion in bank loans and $30 billion of investment-grade debt, and that Pacific Investment Management Company was also involved. Musk gave no final terms, pricing or lender names in his X posts, Fortune India noted.

SpaceX anticipates spending $35 billion to $40 billion on capital projects in Q4 2026, after about $19.6 billion in Q3, Fortune India reported. The new debt will have little effect on fourth-quarter results and most of it will be paid down early, Musk said, according to SiliconANGLE.

The warning comes as hyperscalers maintain heavy AI-related capital spending. SiliconANGLE said Morgan Stanley estimated AWS, Microsoft, Google and Meta would spend $700 billion on capex in 2026 and more than $1 trillion in 2027, while Goldman Sachs projected their borrowing would hit $250 billion this year and $400 billion next year. The report also said total AI debt issuance worldwide is likely to exceed $570 billion in 2026. Investors are seeking higher yields on AI infrastructure bonds because they worry AI service revenue may not grow quickly enough to cover the outlays, SiliconANGLE reported.