TLDR
- Elon Musk said SpaceX closed $40 billion in debt financing for Nvidia GPUs, with chips due in the first half of 2027.
- SPCX stock rose about 1% after hours on Sunday, to roughly $147.
- Bloomberg says the deal is not yet priced, and talks continued late Sunday.
- Q3 revenue rose 161% to $14.58 billion, and capital spending nearly tripled to $19.6 billion.
- Musk expects more than 200 “neocloud” firms to fail or merge as lenders pull back.
SpaceX (SPCX) stock edged up 1% in after-hours trading on Sunday, gaining $1.06 to about $147. The move followed word from Elon Musk that the company has closed $40 billion in debt financing for AI chips.
Space Exploration Technologies Corp., SPCX
Musk shared the news in a post on X. He said SpaceX is investment grade and earns revenue from Starlink and rocket launches.
A follow-up post added detail. The financing is mostly callable debt for graphics processing units, with delivery expected in the first and second quarters of 2027.
There is a catch, though. Bloomberg reported that pricing talks were still going late Sunday and the deal had not been priced.
The parties hope to finalize the package in the coming days. So “closed” comes with a few loose ends for now.
What We Know About the Deal Structure
Bloomberg said a special purpose vehicle would hold the debt. That keeps it off SpaceX’s balance sheet and helps protect its credit ratings.
Goldman Sachs was leading talks with investors, including Apollo Global Management. Musk said the debt is set up as private bonds issued by an off-balance-sheet entity.
The money is meant for Nvidia (NVDA) chips. Reuters reported earlier this month that SpaceX was talking to banks and asset managers about the raise.
The Q3 numbers show why the appetite is so big. Revenue rose 161% to $14.58 billion.
The AI unit, which SpaceX calls “Super Intelligence,” is now its largest. Its revenue jumped ninefold to $7.56 billion from $813 million a year ago.
Spending is climbing just as fast. Capital spending nearly tripled to $19.6 billion in Q3, and SpaceX expects $35 billion to $40 billion in Q4.
Musk Warns of Trouble for Smaller AI Firms
Musk said debt markets have nearly stopped lending to companies without major revenue outside AI data centers. He expects more than 200 neocloud firms to struggle.
“Guppy-level death and consolidation” was how he put it. “Some will make it through, but not many.”
Neocloud firms rent computing power to AI developers and other clients. Many borrow money to buy GPUs.
SpaceX is also working with Tesla (TSLA) on Terafab, a chip plant. The first test chip is targeted for May or June 2027.
Analysts rate SPCX a Strong Buy, with 29 Buys, five Holds and one Sell. The average price target is $250, about 70% above current levels.
Bloomberg said final pricing of the debt package could come in the coming days.
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