SpaceX borrows $40B for GPUs, Musk warns of shakeout

SpaceX has raised $40 billion in callable debt to buy GPUs. Elon Musk announced the deal on X and paired it with a warning for neoclouds, the newer firms that rent out AI computing power.

Debt to power new GPUs

The debt is callable, so SpaceX can repay it early. It could be used to pay for GPU deliveries expected in the first half of 2027, though Musk did not explicitly say so. SpaceX's credit rating is strong, backed by Starlink internet service and rocket launches, which do not rely on AI data centers.

Musk said debt markets have almost entirely shut off access to money for any company without substantial revenue outside AI data centers. He predicts that more than 200 neoclouds will consolidate, with only a few surviving, as lenders grow more selective.

Chamath Palihapitiya has said many neoclouds appear poorly funded and badly run. He argued that Amazon, Microsoft and Google are moving slowly on deals and prefer to keep computing power for their own use. He said delays in building data centers could leave chips idle or unable to cover financing costs in 2027.

SpaceX plans to end 2026 with 2.5 to 3 GW of capacity and add another 13 GW by the end of 2027, for a total of around 20 GW. Its 2027 compute-related capital spending is expected to reach $390 billion, about $30 billion per gigawatt.