SpaceX raises $40B as neocloud credit dries up

Elon Musk announced SpaceX secured $40 billion in debt financing to purchase Nvidia GPUs for AI data centers, with deliveries expected in early 2027. Musk warned that debt markets have nearly shut off access to capital for companies lacking revenue independent of AI infrastructure, predicting consolidation among neoclouds. He stated that over 200 neoclouds face acquisition or failure. SpaceX was able to secure funding due to its investment-grade credit rating and revenue from Starlink and space launches. Apollo Global Management led the deal, comprising roughly $10 billion in bank loans and $30 billion in investment-grade debt.