Musk Says SpaceX Has Closed $40 Billion Debt Financing for Nvidia GPUs

Elon Musk said on October 25 that SpaceX has closed $40 billion in debt financing to buy graphics processors from Nvidia, according to a TipRanks report. Bloomberg reported separately that pricing talks were still continuing late Sunday in New York, so details of the final package may still change.

What has been reported

• The debt is being issued as private bonds by an off-balance-sheet entity, according to the report
• The GPUs are due to be delivered in the first and second quarters of 2027
• No lenders were named in the report. Earlier in October, the Financial Times reported that Apollo Global Management was expected to lead the deal, with a mix of roughly $10 billion in bank loans and $30 billion in investment-grade debt, and that Pimco was among lenders in talks
• Those earlier reports relied on unnamed sources, and the companies involved had not publicly confirmed the plan at the time

Musk wrote on X that SpaceX's investment-grade credit rating and its Starlink and launch revenue helped secure the financing, which he said was "Not a major factor this quarter."

Musk's warning on smaller AI clouds

Musk also said that more than 200 smaller "neocloud" companies, which rent out AI computing capacity, could fail or merge as credit becomes harder to obtain. He described the outlook as "guppy-level death and consolidation" on X.

Context

The financing would be among the largest debt-funded purchases of AI chips by a single buyer. It follows a growing pattern of AI infrastructure being paid for with outside capital: Meta announced a large equity raise the same day, and Waymo, Alphabet's self-driving unit, closed a $5 billion term loan earlier this month.

For Nvidia, the order adds to a backlog of demand for its data-center products that already includes large commitments from cloud providers and AI labs. Because the financing terms have not been published and the pricing was reportedly unsettled, the details above come from Musk's statement and press reports, not from a company filing.