SpaceX obtains $40 billion debt financing for AI GPU purchases

SpaceX announced that it has closed a debt financing package of up to $40 billion to fund the purchase of graphics processing units (GPUs) for its artificial-intelligence operations. The company said the financing was possible because of its investment-grade status and cash flow from its Starlink satellite-internet service and rocket-launch business.

"SpaceX closed $40B of debt for GPUs, but we're investment grade and have Starlink & launch revenue," Elon Musk said on X.

The GPUs are expected to be delivered in the first half of 2027, Musk added, noting that the debt is primarily callable and will not have a material impact on the current quarter’s finances. SpaceX’s chief financial officer, Bret Johnsen, indicated that the company plans to spend between $35 billion and $40 billion on capital expenditures in the fourth quarter.

Musk warned that debt markets have largely withdrawn financing for firms that depend heavily on AI-related revenue without other substantial income streams, suggesting that many such companies could face difficulties. He contrasted this with SpaceX’s diversified revenue base, which helped it achieve third-quarter revenue of $14.58 billion, a 161 % increase from the prior year.

The funding move highlights the high cost of building AI computing capacity, as firms compete for advanced chips and related infrastructure.