Elon Musk readies his signature gambit at SpaceX
NVDA•SpaceX is reportedly seeking to raise $40 billion in loans and investment-grade debt to buy Nvidia chips for data centers. The company had 1.4 gigawatts of computing capacity at the end of the second quarter, and its CEO expects about 15 gigawatts by the end of 2027.
1. Financing data centers
SpaceX is reportedly seeking $10 billion in bank loans and $30 billion in debt to purchase Nvidia chips for its data centers. The deal is expected to close in 2027, and SpaceX has a BBB credit rating. CFO Bret Johnsen said in September that the upfront investment could pay back in less than a year; MoffettNathanson estimates about 1.5 years.
2. Capacity and contracts
SpaceX had 1.4 gigawatts of computing capacity at the end of the second quarter. Its CEO expects that to reach around 15 gigawatts by the end of 2027, roughly equivalent to Amazon’s entire current capacity, according to MoffettNathanson analysts. The company’s ability to offer server capacity quickly has secured higher pricing than rival data-center operators, including in a deal with Anthropic.
3. Competition risks
The article compares the strategy with Musk’s earlier bets on scaling Tesla’s electric-vehicle factories and SpaceX’s satellite constellation, which it says paid off. It warns that competition could erode profits: data-center customers such as Anthropic and Google can leave with 90 days’ notice, while competitors are building capacity. The article cites an estimate of $10 trillion in data-center industry investment by 2032.
