Musk says SpaceX raised $40 billion in debt deal, predicts neocloud shakeout
SPCX•Elon Musk said SpaceX closed $40 billion in callable debt financing for GPU purchases expected in the first and second quarters. He predicted failures and consolidation among neocloud companies as debt markets tighten access to financing.
1. Debt for GPU purchases
Musk said SpaceX closed $40 billion in debt financing for graphics processing units, with deliveries expected in the first and second quarters. He said the callable debt would not be a major factor this quarter and attributed the financing to SpaceX’s investment-grade status and revenue from Starlink and launch businesses. It was not immediately clear what Musk meant by the deal being “closed” or whether investors had agreed to pricing.
2. Spending and revenue
SpaceX expects fourth-quarter capital expenditure of $35 billion to $40 billion, Chief Financial Officer Bret Johnsen said. Revenue rose 161% year over year to $14.58 billion for the three months ended September 30, while AI revenue surged almost tenfold to $7.56 billion.
3. Neocloud outlook
Musk said debt markets had almost entirely shut off access to money for companies without substantial revenue independent of AI data centers. He predicted significant consolidation and failures among neocloud companies and said SpaceX would not buy any. SpaceX and Tesla’s Terafab chip manufacturing joint venture aims to produce its first test chip around May or June next year and reach volume production by the third quarter of 2028.
