SpaceX Debt Deal: Musk Says $40 Billion Closed, Warns Neoclouds

Elon Musk said on Sunday that a $40 billion SpaceX debt deal had closed, allowing the company to purchase more GPUs, the chips that power artificial intelligence.

Musk, chief executive of both SpaceX and Tesla, made the announcement in a post on X on 25 October. He described the financing as “primarily callable debt for GPU purchases,” meaning SpaceX can repay it before it matures.

The chips are due to arrive in the first and second quarters, Musk wrote, adding that the debt is “not a major factor this quarter.” Several reports placed the deliveries in the first half of 2027.

It is not clear what Musk meant by “closed”. Reuters and Bloomberg noted that it was unclear whether investors had agreed on final terms. SpaceX has not disclosed its lenders, the interest rate or the maturity of the debt.

What we know about the SpaceX debt deal

Reuters, citing the Financial Times, reported on 6 October that SpaceX was trying to raise around $40 billion to buy Nvidia GPUs. Bloomberg reported that institutions led by Goldman Sachs had been speaking with investors such as Apollo Global Management about the financing. The discussions involved an off-balance-sheet structure.

According to Crypto Briefing, earlier talks pointed to around $10 billion of bank loans and $30 billion of investment-grade debt, but the final structure has not been confirmed. SpaceX went public in June.

Musk credited SpaceX’s investment-grade credit rating and its steady revenue from the Starlink satellite internet service and rocket launch business for its ability to borrow at this scale.

A spending surge behind the borrowing

SpaceX is looking to increase its spending on AI. Chief Financial Officer Bret Johnsen expects capital expenditure of between $35 billion and $40 billion in the fourth quarter, according to Reuters.

Revenue for the quarter ended 30 September rose 161% year-on-year to $14.58 billion. AI revenue grew nearly tenfold to $7.56 billion, and Bloomberg reported that the AI division posted its first profit in the third quarter.

Johnsen told investors on the earnings call that further borrowing was possible, and that the company was confident it could raise capital prudently while keeping its investment-grade rating, Bloomberg reported.

Musk warns of a neocloud shakeout

Musk also turned to neoclouds, the companies that rent out AI computing capacity. He said debt markets had largely cut off firms without substantial revenue outside AI data centres, and predicted “guppy-level death and consolidation” in the sector.

Bloomberg reported that Musk predicted large-scale failures and consolidation among more than 200 neocloud companies, saying financing conditions for the sector had worsened sharply. He argued that SpaceX’s revenue beyond its data centres sets it apart from other AI infrastructure firms.

He said SpaceX had no plans to buy a neocloud, calling the idea “pointless.” Shares of CoreWeave, IREN and Nebius fell nearly 3% in overnight trading after his comments, according to Stocktwits.

For business leaders and investors, the SpaceX debt deal highlights a widening gap in AI financing. Companies with large, diversified revenue can still borrow tens of billions of dollars, while smaller infrastructure players face tighter credit if Musk’s reading of the market is right.

The Musk companies are also building their own chip supply. Terafab, a SpaceX–Tesla chip joint venture in Austin, expects a first test chip around May or June next year and volume production in the third quarter of 2028, Reuters reported.

Musk told investors last week that merging SpaceX and Tesla would be “a good idea,” citing growing overlap between the two companies. No lender has publicly confirmed the terms of the SpaceX debt deal so far.

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