Musk says SpaceX raised $40 billion in debt deal, predicts neocloud shakeout
Musk said the financing will buy chips for AI systems as he warned that more than 200 neocloud providers could face consolidation.
- On October 25, SpaceX CEO Elon Musk announced the company closed $40 billion in debt financing to purchase graphics processing units, leveraging Starlink revenue and investment-grade status to secure credit.
- Massive capital requirements for AI development drove SpaceX capital expenses to $19.6 billion, prompting the company to develop Terafab, a chip manufacturing joint venture with Tesla based in Austin.
- Financial results for the three months ended September 30 show SpaceX revenue climbed 161 percent to $14.58 billion, confirming the company's heavy AI investment is translating into revenue.
- Financing led by Apollo and Goldman Sachs carries interest rates of about 8.3 percent for lowest-rated debt, while a safer tranche is expected to price around 7.75 percent next week.
- Broader market jitters fueled by a CoreWeave debt selloff recently weakened existing SpaceX bonds, even as President Donald Trump purchased $5 million in SpaceX bonds in August.
123 Articles
123 Articles
Elon Musk lines up $40 billion for SpaceX’s AI ambitions — warns smaller cloud companies may not survive
SpaceX will be receiving $40 billion to finance graphics processing units as founder Elon Musk issues a warning about industry consolidation. The graphics processing units (GPUs) are […]
Elon Musk lines up $40 billion for SpaceX's AI ambitions — warns smaller cloud companies may not survive · American Wire News
SpaceX will be receiving $40 billion to finance graphics processing units as founder Elon Musk issues a warning about industry consolidation. The graphics processing units (GPUs) are […]
Musk says US$40bn chips debt closed; talks continue
Elon Musk said SpaceX has closed a US$40 billion debt deal to pay for the chips needed to fuel its artificial intelligence (AI) ambitions. People familiar with the discussions, though, told Bloomberg News that talks over pricing were still ongoing.“SpaceX closed US$40B of debt for GPUs,” Musk wrote
The American company SpaceX Ilona Masca has entered into a $40 billion lease agreement with the investment company Apollo Global Management to finance the purchase of graphic processors. The funds will be used to purchase the Nvidia chip needed to develop artificial intelligence technologies, and will transfer TASS with reference to Bloomberg. It is expected that the deal will be closed before the end of the year and that the leasing contracts w…
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