# SpaceX borrows $40 billion for AI chips, and Musk predicts most neoclouds will die

URL: https://ai-pulse.aglaganova.com/blog/spacex-borrows-40-billion-for-ai-chips-and-musk-predicts-most-neoclouds-will-die
Published: 2026-10-26
Author: Roman Aglaganov, Full-stack developer
Category: Industry
Region: North America
Tags: chips

> SpaceX has signed a binding commitment with an Apollo-managed fund for about $40 billion to buy GPUs arriving in 2027. Elon Musk says lenders have shut out AI cloud companies without other revenue, and most of the 200-plus will fail or be absorbed.

![Illustration: a tall black stack of chip squares on one side and a scatter of small grey squares falling away on the other, one of them red](https://ai-pulse.aglaganova.com/api/media/file/spacex-debt-1.png)

Elon Musk said on X on Sunday 25 October that SpaceX had closed $40 billion in debt financing to buy graphics processors (GPUs), the chips that run AI. In a regulatory filing on Monday, SpaceX said it had signed a binding commitment with an entity managed by Apollo for roughly $40 billion in GPU financing.

## The deal

Musk said the money is mostly callable debt, meaning it can be repaid early, for chips due to arrive in the first half of 2027. He credited SpaceX’s investment-grade rating and its revenue from Starlink internet and rocket launches. SpaceX has moved aggressively into AI this year and now calls the business “Super Intelligence”; it is the company’s largest unit, with third-quarter revenue of $7.56 billion, up from $813 million a year earlier, according to its earnings release.

## The warning

Musk also said debt markets have largely shut off financing for companies that do not have substantial revenue outside AI data centres. He predicted that of the more than 200 “neocloud” companies, which rent out AI computing, most would fail or be bought, leaving only a handful. That is his forecast, not an established trend, and it comes from the owner of a competing AI business.

Musk later said SpaceX would not buy any neoclouds, calling it “pointless”, Reuters reported.

## Why it matters

The AI build-out is increasingly paid for with debt, and lenders are starting to choose who they trust. Companies with other cash flows, like SpaceX’s satellites or the cloud giants’ existing businesses, can still borrow on good terms. Companies whose only business is renting out GPUs depend on the AI boom continuing. If credit stays tight, the market for AI computing could end up in fewer hands.

## Sources

- [CNBC: SpaceX closes $40 billion debt deal for AI chips, Elon Musk says](https://www.cnbc.com/2026/10/26/spacex-closes-40-billion-debt-deal-for-ai-chips-elon-musk-.html)
- [The Star (Reuters): Musk says SpaceX raised $40 billion in debt deal, predicts neocloud shakeout](https://www.thestar.com.my/tech/tech-news/2026/10/26/musk-says-spacex-raised-40-billion-in-debt-for-gpus)