By Emily Bary
DOW JONES--According to Elon Musk, SpaceX has secured $40 billion in debt financing amid widespread skepticism toward artificial intelligence (AI). This will enable SpaceX to acquire graphics processing units (GPUs)—a type of AI chip—Musk announced on X, a platform he also owns. SpaceX is rapidly expanding its Neocloud business, through which the company leases access to chips to businesses that need AI computing power.
Musk explained that SpaceX’s investment-grade rating and the company’s diversified business model—which includes revenue from rocket launches and Starlink satellite technology—made the transaction possible. In a separate post, Musk noted that the debt consists “primarily of callable debt for GPU purchases to be delivered in the first and second quarters” and that the agreement would not be a “material factor” in the current quarter. SpaceX did not immediately respond to a request for comment on the debt financing.
In recent weeks, investors had become increasingly nervous about debt financing in the AI sector—particularly in connection with Neocloud companies like Coreweave, which rely on debt to fuel their growth. The pressure on Coreweave’s bonds has caused unease across the tech landscape, partly due to the close interconnections among large corporations. Coreweave did not immediately respond to a request from MarketWatch for comment on Musk’s remarks.
“Over the past few weeks, the credit markets have almost completely cut off access to funding for nearly every company that cannot demonstrate significant revenue independent of AI data centers,” Musk wrote in his X post on Sunday. He also predicted that “more than 200 Neocloud providers will experience a Guppy-level mass extinction and a wave of consolidation.” “Some will make it through, but not many,” he added.
Musk further hinted that his company would not be part of any future industry consolidation. He wrote: “SpaceX isn’t buying any Neoclouds. Completely pointless.”
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(END) Dow Jones Newswires
October 26, 2026 04:15 ET (08:15 GMT)
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