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

Elon Musk revealed that SpaceX has secured $40 billion in debt financing for graphics processing units, highlighting the company's investment-grade status and revenue from its Starlink satellite internet and launch businesses. This debt will primarily be callable for GPU purchases arriving in the first and second quarters of the year.

Musk shared this news on X, following reports from Reuters that SpaceX is in discussions with banks and asset managers to raise the same amount of capital for Nvidia artificial intelligence chips. The funding emphasizes the significant capital demands of the AI boom as tech companies compete to acquire advanced processors and build the computing infrastructure necessary to support AI development.

SpaceX's revenue surged 161% to $14.58 billion for the three months ended September 30, indicating that the company's investment in AI is yielding revenue, despite considerable spending on compute infrastructure, which nearly tripled to $19.6 billion. SpaceX's joint venture with Tesla, Terafab, is expected to produce its first test chip around May or June of next year, with plans for volume production by the third quarter of 2028.

In preparation for its highly anticipated IPO, SpaceX had listed the acquisition of its own GPUs among its substantial capital expenditures in its S-1 statement, warning potential investors of its ambitious spending plans to develop AI and other technologies.