Musk says SpaceX secured $40 billion in debt for Nvidia GPU purchases

SpaceX stock moves after Musk's post

CoinCentral reports that Elon Musk said on Sunday that SpaceX, listed as SPCX in the article, had closed $40 billion in debt financing to buy graphics processing units. After his post on X, the stock rose about 1% in after-hours trading, gaining $1.06 to around $147.

What Musk said about the financing

In his post, Musk said SpaceX is investment grade and said the company has revenue from Starlink and rocket launches. He later said the debt is mostly callable and tied to the GPUs. According to Musk, the chips are expected to arrive in the first and second quarters of 2027.

Bloomberg's report on the deal structure and timing

CoinCentral cites Bloomberg as saying the pricing talks were still going late Sunday in New York. Bloomberg reported that the deal had not yet been priced and that the parties were still working to finalize the package in the coming days. The article says Goldman Sachs was leading discussions with investors, and Apollo Global Management was among the firms involved.

Off-balance-sheet structure and earlier reporting

Musk said the debt is being arranged as private bonds issued by an off-balance-sheet entity. He said the balance sheet impact would be "not a major factor this quarter." CoinCentral also notes that Reuters reported earlier this month that SpaceX had been speaking with banks and asset managers about raising the $40 billion, with the funds intended for Nvidia chips. Bloomberg said the structure uses a special purpose vehicle, which keeps the debt off SpaceX's balance sheet and is meant to help protect its investment-grade ratings.

Rising spending and revenue at SpaceX

CoinCentral says SpaceX has expanded quickly into AI this year through a unit it calls "Super Intelligence," or SI. The article says that unit is now the company's largest. Third-quarter SI revenue rose ninefold to $7.56 billion from $813 million a year earlier. Total revenue increased 161% to $14.58 billion. Starlink ended September with 13.6 million consumer subscribers, and enterprise and government revenue rose 91%.

Higher costs and Musk's warning on neocloud firms

The article says capital spending nearly tripled to $19.6 billion in the third quarter, and SpaceX expects spending of $35 billion to $40 billion in the fourth quarter as new computing sites open. CoinCentral also reports that SpaceX is working with Tesla on Terafab, a chip plant. The first test chip is targeted for May or June 2027, and volume production is planned for the third quarter of 2028.

Musk also warned that debt markets have almost stopped lending to companies without major revenue outside AI data centers. He said more than 200 "neocloud" firms could face heavy consolidation, though some may survive. CoinCentral explains that neocloud firms rent computing power to AI developers and others, and many borrow to buy GPUs and expand.