Musk says SpaceX raised US$40 billion in debt for GPUs

Elon Musk disclosed that SpaceX secured a $40 billion debt financing arrangement to acquire graphics processing units (GPUs). The company's investment-grade status and revenue from Starlink satellite internet and launch services have aided in maintaining its access to credit. Musk mentioned in a recent post on X that the debt is primarily callable and will be used for GPU purchases arriving in Q1 and Q2 of the year.

The announcement follows Reuters' earlier report of SpaceX negotiating with banks and asset managers to raise the same amount of funds for purchasing Nvidia AI chips. The funding highlights the massive capital requirements of the AI boom, as tech companies compete for advanced processors and infrastructure for AI development. SpaceX's revenue grew 161% to $14.58 billion in the three months ending September 30 from the same period last year, indicating that its heavy investment in AI is starting to generate revenue, despite significant spending on computing infrastructure, which nearly tripled to $19.6 billion.

SpaceX's Terafab chip manufacturing joint venture with Tesla is expected to produce its first test chip in May or June 2027, with plans for volume production by the third quarter of 2028.