SpaceX has secured $40 billion in debt financing to buy AI semiconductors and GPUs, according to reports citing Musk, who also warned of a coming neocloud shakeout.
SpaceX, led by Elon Musk, has secured $40 billion (approximately 53 trillion Korean won) in funding to purchase NVIDIA AI semiconductors. The announcement comes amid growing controversy over speculative investment in AI data centers. Musk warned that companies without stable revenue streams outside AI data centers face blocked funding, and he predicted large-scale restructuring and potential bankruptcies. As competition in AI infrastructure investment intensifies, the financial health and fundraising capacity of companies are diverging sharply.
Musk stated on his social media platform X on October 25 (local time): "SpaceX has completed $40 billion in debt financing for GPU purchases. We hold an investment-grade credit rating and generate revenue from Starlink and rocket launch operations." He said the borrowed funds will be used to purchase GPUs in the first and second quarters of next year, and that the debt is mostly in forms that allow early repayment.
**$53 Trillion Won for AI Semiconductor Purchases; "Mass Neo-Cloud Elimination" Predicted**
SpaceX began pursuing funding for NVIDIA AI semiconductor purchases earlier this month. Major financial firms, including Apollo Global Management and Pimco, reportedly took part in the negotiations. Musk directly confirmed the completion of the funding.
SpaceX's third-quarter revenue this year reached $14.58 billion, up 161% from the same period last year. Revenue from its AI business alone surged to $7.56 billion, a tenfold increase. The company expects to invest between $35 billion and $40 billion in facility upgrades in the fourth quarter of this year. Musk emphasized that despite massive AI investments, the company secures borrowing capacity based on revenue from its existing businesses.
Musk also said the financial conditions of other AI data center companies have deteriorated severely. "In recent weeks, debt markets have nearly completely cut off funding to firms without significant revenue unrelated to AI data centers," he said. He specifically forecast that "neo-cloud" companies, which lease computing services to AI developers using GPUs and servers they have secured, will face large-scale mergers, closures, and bankruptcies.
These companies make heavy upfront investments in GPU purchases and data center construction, then recover those costs by providing computing services to clients. If new funding becomes difficult to obtain, facility expansion could stall and existing debt repayment burdens could grow. Musk clarified that SpaceX has no plans to acquire these companies.
**CoreWeave Bond Plunge; Fundraising Outcomes Diverge**
Financial markets are increasingly wary of the massive debt carried by AI data center companies. U.S. AI cloud firm CoreWeave recently saw both its stock and corporate bond prices plummet. With debt exceeding $50 billion, its credit default swap (CDS) premium, a gauge of default risk, has also risen. Investors are questioning whether companies that invested heavily in AI semiconductors and data centers ahead of demand can service their debt with future earnings.
Not all AI cloud firms are being shut out of funding, however. On October 22, Nebius announced it had secured $3.5 billion in financial support from Citibank for data center construction and GPU purchases. The loan has a 364-day maturity and an initial interest rate of SOFR plus 2.75 percentage points. Despite growing market caution, new funding continues to flow based on each company's contracts, collateral, and business prospects.