Business · Updated 26 Oct, 08:24 am IST
Elon Musk says SpaceX raised $40 billion debt to buy GPUs
Why it matters for readers: It explains why companies are spending massive sums to secure GPUs needed for modern AI models.
- Elon Musk said the $40 billion is primarily callable debt for GPU purchases arriving in Q1 and Q2.1
- Musk credited SpaceX's investment-grade status and revenue from Starlink and launch businesses for preserving access to credit.1
- The report follows Reuters coverage that SpaceX was in talks with banks and asset managers to raise $40 billion for Nvidia AI chips.1
- SpaceX reported revenue of $14.58 billion for the three months ended September 30, up 161% year-over-year, while capital expenses nearly tripled to $19.6 billion.1
- Terafab, the chip joint venture between SpaceX and Tesla in Austin, is expected to produce its first test chip around May or June next year.1
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