SpaceX's $40bn debt raise puts Nvidia GPUs at the centre of its AI bet

A $40 billion debt line is enough to lock up a large share of Nvidia's supply, and SpaceX says it now has one. Elon Musk said in an X post on Sunday, 25 October, that the company has closed $40 billion in debt financing to buy GPUs for its AI systems, according to CNBC.

Musk said the debt is mostly callable, meaning SpaceX can repay it early. He said the GPUs are due in the first half of 2027. He has previously said SpaceX plans to use Nvidia hardware exclusively in its data centres. SpaceX absorbed xAI and went public in June.

The size of the raise stands out against the balance sheet. SpaceX reported $38.43 billion in total debt principal as of 30 June, so a $40 billion facility would roughly double that figure if it is all new borrowing. The notes do not say how the new debt sits alongside the existing principal.

Earlier reporting by the Financial Times and Bloomberg had SpaceX in talks for about $10 billion of bank loans and $30 billion of investment-grade debt. Apollo was expected to lead, with Goldman Sachs and Pimco involved. That reporting described the fundraising as early-stage, so the closing announced by Musk is a faster outcome than those accounts suggested.

One caveat matters for anyone pricing this. The closing rests on Musk's own post. The coverage reviewed cites no filing or lender statement, and no lender roster has been confirmed. Reuters also reported Musk's account.

Musk also warned that more than 200 smaller AI cloud firms could fail or merge with rivals as credit tightens.

Nvidia is the clearest winner if the deal is as described. A buyer with exclusive loyalty to its hardware and financing in hand gives it a large, committed order for the first half of 2027. The callable structure gives SpaceX room to refinance or repay early, which limits how long it carries the cost.

The exposed group is the one Musk named himself. Smaller AI cloud firms compete for the same GPUs, and if credit is tightening, a rival able to raise $40 billion sets a bar they may struggle to match. His warning of failures and mergers reads as both a market call and a statement of SpaceX's advantage.

Watch for a filing or a lender confirmation. Until one appears, the amount, the structure and the timing are Musk's account alone, and the gap between the early-stage talks reported earlier and a closed deal remains unexplained.