Elon Musk said SpaceX has closed $40 billion in debt financing to buy GPUs, crediting the company's investment-grade status and revenue from Starlink and its launch business. It was unclear what "closed" meant or whether investors had agreed on pricing; Reuters reported earlier this month that SpaceX was in talks with banks and asset managers over the raise.
Musk said the debt is "primarily callable debt for GPU purchases that will arrive in Q1 and Q2," so it is "not a major factor this quarter." CFO Bret Johnsen guided fourth-quarter capital expenditure to $35-40 billion. SpaceX's third-quarter revenue was $14.58 billion, up 161%, with AI revenue of $7.56 billion.
Musk also predicted significant consolidation and failures among "neocloud" providers, saying debt markets have "almost entirely shut off access to money for any company that doesn't have substantial revenue." He said SpaceX will not buy any neoclouds, calling it "pointless." Investors have begun betting against US neocloud and data-center companies over fears that their debt-fueled AI buildout is unsustainable.