Elon Musk reportedly readies his signature gambit at SpaceX
NVDA•SpaceX is reportedly seeking to borrow $40 billion to buy Nvidia chips for data centers. The company had 1.4 gigawatts of computing capacity at the end of the second quarter and expects around 15 gigawatts by the end of 2027.
1. Debt to fund expansion
SpaceX is seeking $10 billion in bank loans and $30 billion in investment-grade debt to buy Nvidia chips for its data centers. The deal is expected to close in 2027, and the company has a BBB credit rating. SpaceX CFO Bret Johnsen said in September that the investments should pay back in less than a year; MoffettNathanson estimates about 1.5 years.
2. Capacity and customer deals
SpaceX had 1.4 gigawatts of computing capacity at the end of the second quarter, and its CEO expects around 15 gigawatts by the end of 2027. MoffettNathanson estimates the planned additions would roughly match Amazon’s current capacity. The article says SpaceX has signed rapid-fire deals that should generate $10 billion per quarter by year-end, and that an earlier deal with Anthropic brought higher pricing than rival data-center operators.
3. Competition could pressure returns
The article says competitors completing data-center projects could increase capacity and sharply lower pricing. Customers such as Anthropic and Google can leave with 90 days’ notice. It also says Musk’s earlier factory and satellite gambits at Tesla and SpaceX paid off, but competition eventually entered those markets.
