SpaceX secures $40 billion in debt for AI chips as Elon Musk warns over 200 neocloud companies face consolidation and collapse.
SpaceX has closed a $40 billion debt deal to finance the purchase of graphics processing units (GPUs) needed to support its artificial intelligence ambitions, according to the company’s chief executive, Elon Musk.
Musk announced the deal in a post on X, referring to Nvidia Corp’s graphics processing units, which are used to power AI computing systems.
“SpaceX closed $40B of debt for GPUS,” Musk wrote.
However, people familiar with the discussions told Bloomberg News that negotiations over pricing were still ongoing.
Musk also suggested that debt markets had largely closed to neocloud companies that depend exclusively on revenue from AI data centres.
He warned that more than 200 such companies could face significant difficulties, leading to widespread consolidation across the sector.
“That means the 200+ neoclouds are going to see guppy-level death and consolidation,” Musk wrote. “Some will make it through, but not many.”