Elon Musk confirmed SpaceX has raised $40 billion in debt primarily to fund the acquisition of Nvidia GPUs scheduled for delivery in early 2027, underscoring the company’s heavy investment in artificial intelligence technology and infrastructure.
- SpaceX raised $40 billion in callable debt for GPU purchases
- Revenue jumped 161% to $14.58 billion in the last quarter
- Terafab chip JV aims for volume production by Q3 2028
What happened
SpaceX has closed $40 billion in debt financing focused on acquiring Nvidia graphics processing units (GPUs), critical for advancing its artificial intelligence capabilities. Elon Musk announced that the debt is primarily callable and that the GPUs are expected to arrive in the first half of 2027. This debt move follows prior discussions reported between SpaceX and financial institutions about securing funding for these purchases.
Alongside this financing, SpaceX disclosed a steep jump in revenue to $14.58 billion for the three months ending September 30, representing a 161% increase year-over-year. Meanwhile, capital expenditures surged to $19.6 billion, reflecting the intensity of investment into AI computing infrastructure and manufacturing capabilities.
Why it matters
This substantial debt funding highlights the enormous capital demands placed on companies chasing AI innovation, as they compete to secure cutting-edge hardware. SpaceX’s enhanced revenue and investment-grade status have helped maintain its access to credit markets despite the heavy spending required to build and operate advanced satellite internet and launch services.
In parallel, SpaceX is moving forward with Terafab, a joint venture with Tesla focusing on chip manufacturing. Terafab plans to produce its first test chip by mid-2027 with goals for volume production by the third quarter of 2028. This vertical integration effort could provide SpaceX with important control over its AI hardware supply chain, reducing reliance on external suppliers.
What to watch next
Industry observers should watch for the arrival and deployment of the new GPUs during early 2027, which will test SpaceX’s ability to scale its AI infrastructure and enhance its product offerings. The impact of these investments on SpaceX’s operating profitability and competitive positioning will also be key signals over the coming quarters.
Monitoring Terafab’s progress toward volume chip production is equally important, as successful chip manufacturing could mark a strategic shift for SpaceX and Tesla, enabling them to mitigate supply chain constraints and support future AI-driven applications across their business portfolios.