Musk says SpaceX raised $40 billion in debt for GPUs
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FILE PHOTO: Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of X, formerly known as Twitter, gestures as he attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition centre in Paris
Oct 25 (Reuters) - Elon Musk said SpaceX had closed $40 billion in debt financing for graphics processing units, adding the company's investment-grade status and revenue from its Starlink satellite internet and launch businesses had helped preserve its access to credit.
"This is primarily callable debt for GPU purchases that will arrive in Q1 and Q2. Not a major factor this quarter." Musk said in a post on X.
Musk's post comes after Reuters reported earlier this month that SpaceX is in talks with banks and asset managers to raise $40 billion for the purchase of Nvidia artificial intelligence chips.
The funding underscores the enormous capital requirement of the AI boom, as technology companies race to secure advanced processors and build out the computing infrastructure needed to support AI development.
SpaceX's revenue climbed 161% to $14.58 billion for the three months ended September 30 from a year earlier. The third quarter offered the clearest evidence yet that SpaceX’s heavy investment in AI is translating into revenue, even as spending on compute infrastructure remains enormous as capital expenses nearly tripled to $19.6 billion.
Terafab, the chip manufacturing joint venture between SpaceX and Tesla in Austin, should produce its first test chip around May or June of next year as it aims to reach volume production by the third quarter of 2028.
Prior to its blockbuster IPO, SpaceX listed "manufacturing our own GPUs" among the substantial capital expenditures it is undertaking in its S-1 statement, warning prospective investors of its big spending plans to develop AI and other technologies.
(Reporting by Anusha Shah in Bengaluru; Editing by Chris Reese)
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