SpaceX has closed $40 billion in debt financing to purchase graphics processing units for its artificial intelligence operations, according to Elon Musk. The financing highlights the staggering sums flowing into the competition to build greater AI computing capacity, as reported by Fox Business.

Musk announced the financing Sunday and tied the company’s borrowing ability to its investment-grade status. He also pointed to revenue generated outside AI by SpaceX’s Starlink satellite internet and rocket launch businesses.

“SpaceX closed $40B of debt for GPUs, but we're investment grade and have Starlink & launch revenue,” Musk said.

Graphics processing units, commonly known as GPUs, are advanced chips that supply the computing power required to train and operate artificial intelligence systems. Their cost has become a major component of the broader spending push on AI infrastructure.

Reuters previously reported that SpaceX had been discussing a $40 billion financing arrangement with banks and asset managers. That money was expected to be used to purchase Nvidia AI chips.

Musk later offered additional details about the debt and the expected delivery schedule for the chips. He indicated that the financing would not be a major factor in the current quarter.

“This is primarily callable debt for GPU purchases that will arrive in Q1 and Q2,” Musk said in a follow-up post on X. “Not a major factor this quarter.”

The GPUs are expected to arrive during the first half of 2027. It was not immediately clear whether investors had agreed to the pricing terms attached to the debt.

The giant financing package reflects the extraordinary expense associated with the AI race. Companies are pouring substantial sums into advanced chips and the computing infrastructure needed to support increasingly demanding artificial intelligence systems.

SpaceX Chief Financial Officer Bret Johnsen said the company expects to spend between $35 billion and $40 billion on capital expenditures in the fourth quarter alone, according to Reuters.

At the same time, Musk warned that borrowing conditions have deteriorated sharply for businesses that depend heavily on AI infrastructure. Companies without significant revenue beyond AI data centers are facing a particularly unforgiving debt market.

“As of the past few weeks, debt markets have almost entirely shut off access to money for any company that doesn't have substantial revenue independent of AI data centers,” Musk said.

Musk suggested that the squeeze could prove devastating for many companies built around renting computing capacity to AI customers. He specifically pointed to the more than 200 businesses described as neoclouds.

“That means the 200+ neoclouds are going to see guppy-level death and consolidation,” Musk said. “Some will make it through, but not many.”

SpaceX enters that difficult financing environment with established businesses beyond its artificial intelligence operations. Starlink and rocket launches provide the company with revenue streams that Musk cited while discussing its investment-grade standing.

The company’s third-quarter revenue rose 161% compared with the same period a year earlier, reaching $14.58 billion, according to Reuters. That increase came as SpaceX continued generating revenue through Starlink and launch operations.

Musk has also raised the possibility of bringing SpaceX and Tesla together. Last week, he described a potential merger between the companies as “a good idea.”

Both companies have established special committees made up of independent directors to explore a possible transaction, Musk said. However, he emphasized that no merger is certain.

For now, SpaceX’s $40 billion financing package places the focus squarely on the company’s AI ambitions and its ability to secure capital. Musk’s warning suggests that many smaller AI infrastructure players may not enjoy the same access as debt markets tighten and consolidation looms.

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