Elon Musk Says SpaceX Closes $40 Billion Debt Deal to Buy AI Chips

In order to acquire GPUs, which are the brains behind AI systems, Elon Musk said that SpaceX has secured $40 billion in loan financing. On October 25th, Musk announced that SpaceX had closed the financing in an X post.

In addition, he mentioned that the company's Starlink satellite internet and rocket launch companies brought in revenue, making it an investment grade. The funding, which mainly came from callable loans for GPUs, is anticipated to arrive in the first and second quarters of 2027, he said in a follow-up post. SpaceX reportedly sought $40 billion from investors and banks in order to buy Nvidia chips.

Why Funding can Act as Catalyst for SpaceX?

According to Bloomberg, the planned financing would involve the use of a special purpose vehicle in order to maintain SpaceX's investment-grade credit ratings and keep the debt off their balance sheet. Bloomberg reported that Goldman Sachs was in the lead during discussions with investors, notably Apollo Global Management, on the financing structure. Companies are investing billions of dollars into data centres and advanced semiconductors to support increasingly powerful AI models. This investment trend highlights the massive capital requirements of the AI boom.

This year, SpaceX has made a bold push toward artificial intelligence, dubbed "Super Intelligence" (SI) by the company. According to the most recent earnings statement, the segment's sales for the third quarter increased ninefold to $7.56 billion from $813 million a year ago. Hence, making it the largest business unit for the corporation. Musk foresaw massive failure and consolidation among over 200 so-called neocloud enterprises, with only a handful making it. Organisations like this offer cloud computing infrastructure tailored to AI and ML tasks.

Musk Blames ‘Certain Oligarchs’

 After a senior executive announced at a public forum that Starlink had invested in the Indian market and was prepared to launch operations once it received the official approval. However,  American billionaire and founder of SpaceX and Tesla Elon Musk accused "certain oligarchs" of obstructing the company's entry into the Indian market.

Musk did not mention any specific groups or companies, despite the fact that he controls social media platform X. "Unfortunately, we are being blocked by certain oligarchs in order to maintain their monopolistic chokehold on the Indian people. You can guess who they are… This is a crime against the people of India!" Musk said in a post on X late 7 October's evening.

 Three companies have applied to provide broadband internet via satellite in India, and Starlink is one of them. Two more companies are now awaiting security clearances after being handed licences; one is Eutelsat OneWeb (now Eutelsat Group), supported by the Bharti Group. The other is Jio Satellite Communications, a subsidiary of Reliance Jio, backed by Reliance Industries. At the same time, Jio is developing its own constellation of low-Earth-orbit (LEO) satellites to compete with industry heavyweights like Starlink and Amazon Leo.