Elon Musk confirmed that SpaceX closed a $40 billion raise, mostly callable debt, to buy NVIDIA (NVDA) GPUs arriving in Q1 and Q2 2027. Jim Chanos asked what share of the 10 GW SpaceX is building in 2027 sits in terrestrial data centers, calling it a $500 billion question. For now, SpaceX's AI segment earns from renting out ground compute, bringing in $7.6 billion of its $14.6 billion third-quarter revenue, while its largest future markets depend on space data centers and Starship. Analysts expect revenue to rise from $48.8 billion in 2026 to $180 billion in 2027, a figure that depends on rental prices holding as new capacity comes online. The author views the AI business as a neocloud for the next couple of years, backed by Starlink's cash, with the $26.5 trillion orbital opportunity treated as an option Starship still has to earn.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/23/2026 | 210.96 |
| Change that session | -0.59% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- SpaceX strikes $40B GPU leasing deal with private credit players
SpaceX has signed a $40 billion master finance lease to buy Nvidia GPUs supporting its subsidiary xAI and related data center projects, which it described as the largest committed GPU financing to date. Apollo and Goldman Sachs led the committed financing, with Goldman Sachs as structuring agent, and affiliates of BlackRock, Goldman Sachs Asset Management and KKR also provided financing commitments. Apollo will acquire “Vera Rubin” GPUs and related equipment from Nvidia and lease them to SpaceX in tranches, with lease terms of roughly 5 to 5.25 years, and SpaceX will pay rent equal to 5% of each tranche's financed cost plus a fixed annual rate on the outstanding balance, according to an Oct. 26 8-K filing. The deal exceeds a $36 billion structured notes deal led by Apollo and Blackstone to lease GPUs to Anthropic, and it is expected to close before year-end, with leasing starting in H1 2027. The GPUs will power xAI's Grok and the company's terrestrial compute buildout.
- Elon Musk predicts many neoclouds will experience 'guppy-level death'
SpaceX (SPCX) confirmed it has closed a $40 billion finance lease deal for Nvidia (NVDA) AI chips, backed by Apollo. Elon Musk said debt markets have largely stopped lending to neoclouds that rely on revenue to pay for data centers, and that more than 200 neoclouds will see "guppy-level death" through consolidation, with few surviving. The $40 billion deal has not yet priced; Bloomberg reported its debt could price at around 8%, above earlier expectations, while CoreWeave's debt is trading at about 15%. Chamath, an AI bull, also said it will be a consolidation year for a few. The hosts noted Musk's comments may be self-serving, or aimed at talking prices down so he can pick up more computing capacity.
- Musk says SpaceX raised $40 bln in debt, warns of neocloud collapse
Elon Musk said SpaceX closed 40 billion USD in debt financing to buy AI chips and warned that more than 200 specialised cloud providers face widespread failures and consolidation as credit tightens. He said debt markets have almost shut off funding for companies without substantial revenue independent of AI data centers. SpaceX secured the loan thanks to its investment-grade credit and revenue from Starlink and rocket launches, unlike neocloud providers that rely on renting computing capacity to AI developers. The debt mainly funds GPUs expected in Q1 and Q2 2027, following earlier reports that SpaceX sought 40 billion USD for Nvidia chips. Investors are increasingly concerned about debt-funded AI infrastructure, with neoclouds such as CoreWeave and Nebius exposed to financing costs and demand uncertainty.
- SpaceX's Elon Musk reveals $40 billion in debt for AI chips, warns of neoclouds
SpaceX (SPCX) CEO Elon Musk said the company closed $40 billion in financing to buy specialized AI chips, but warned that debt access has nearly dried up for firms without substantial revenue outside AI data centers. Shares of CoreWeave (CRWV) and Nebius (NBIS) fell after his comments. Musk said the debt is primarily callable debt for Nvidia (NVDA) GPU purchases arriving in Q1 and Q2 and is not a major factor this quarter. SpaceX's AI segment brought in $7.6 billion in the third quarter, more than Starlink and the rocket business combined and over half of its $14.6 billion total revenue. Musk predicted neoclouds will see 'guppy-level death and consolidation,' and CoreWeave shares have tanked more than 37% over the past month.
- Musk Says SpaceX Locked In $40 Billion for Chips, a Win for Nvidia: “We’re Investment Grade”
Elon Musk said SpaceX (SPCX) has closed $40 billion of mostly callable debt to buy GPUs for deliveries in Q1 and Q2 2027, though Reuters noted it was unclear whether pricing had been agreed and Musk named no lenders, rate or maturity. Musk credited SpaceX's investment-grade status and its Starlink and launch revenue, while third-quarter results showed $51.3 billion in cash, $38.6 billion in marketable securities, $19.6 billion of capex and $9.6 billion of operating cash flow. If all $40 billion went to Nvidia, it would equal about 6% of Nvidia's fiscal 2028 revenue estimate, a figure the article treats as a ceiling since orders and timing are undisclosed. Musk also said debt markets have almost entirely shut for companies without substantial non-AI revenue and predicted more than 200 neoclouds will consolidate, a risk for CoreWeave (CRWV) and Nebius (NBIS).
- Musk says SpaceX landed a $40 billion debt deal — and forecasts doom for some AI rivals
Related markets
Latest news
- Banks are locking AI agents out, Hashgraph CIO Gregg Bell says blockchain is the way back in
JPMorgan and Schwab are barring external AI agents from moving customer money. Hashgraph CIO Gregg Bell argues that an immutable on-chain audit trail could show regulators what an agent did, when, and why.
- Paying Tax on Revenue: What Do Household Businesses Expect?
A draft Law on Small and Medium-sized Enterprise Development would let individual businesses with annual revenue of up to 10 billion VND choose to pay tax based on a percentage of revenue or on taxable income. The option is slated to apply from the 2026 tax period, although the law is expected to take effect on July 1, 2027. Household businesses welcome the change as it could ease pressure from bookkeeping, invoices and accounting costs, but many remain unsure how to determine deductible expenses. Ms. Lê Yến of Hanoitax proposes extending the option to businesses with revenue above 1 billion VND and below 10 billion VND, while Mr. Lê Văn Tuấn of Keytas asks for the new threshold to apply from 2026. According to the Ministry of Finance, over 2.69 million household businesses nationwide have annual revenue of no more than 10 billion VND, accounting for 99.98% of all household businesses.
- Why Intel Stock Popped Today
Intel shares (INTC) rose 4% on Monday after a bullish note from New Street Research analyst Pierre Ferragu and an acquisition announcement. Ferragu sees the stock rising 38% to $125, citing growing interest in agentic AI and persistent supply constraints for server CPUs. He expects Intel to increase server capacity by over 50% in 2027, with data center and AI revenue potentially exceeding Wall Street estimates, and projects server CPU sales reaching $50 billion by 2030 in a market above $220 billion. He estimates Intel could earn $7.10 per share by then, versus consensus of about $1.50 in 2026. After the market close, Intel also agreed to acquire quantum computing software developer Classiq to help scale its quantum computing platforms.
- ACB 9M 2026 Business Results: Credit Grows 11.5%, FitchRatings Raises Rating to BB, Outlook Stable
ACB reported 9-month 2026 results with credit growth of 11.5%, with corporate customers remaining the main growth driver. At the end of Q3, customer loans reached 765 trillion VND and total funding exceeded 807 trillion VND, up 12.3% from the start of the year. During the period, ACB raised a 500 million USD international syndicated loan, and Fitch Ratings upgraded its rating by one notch to BB with a Stable outlook. Pre-tax profit for the nine months exceeded 16,600 billion VND, completing 74% of the full-year 2026 plan, while the Q3 cost-to-income ratio was 31%.
- Anthropic's Billions in Microsoft Commitments Add to Its Mounting Compute Bill
According to its S-1 filing, Anthropic will spend at least 44.9 billion USD with Microsoft between November 2026 and May 2033, regardless of usage, and the agreement is mostly non-cancellable. It has also committed 114.5 billion USD with Alphabet, 110 billion USD with Amazon through 2036, and about 3.1 billion USD per month with Space Exploration Technologies (SPCX) through 2029. Its future spending commitments exceed 500 billion USD, implying at least 400 billion USD in cloud infrastructure spending over the next several years. In the first half of the year, the company reported an 80.7 billion USD GAAP loss, mostly tied to changes in the valuation of its convertible debt, and spent nearly 9 billion USD on compute and infrastructure.
- China and Russia are redrawing Arctic trade. Can Europe fight back?
China and Russia have agreed to expand freight traffic along Arctic shipping corridors, boost port-to-port services and deepen cooperation on building polar vessels, shortly after the EU unveiled a new Arctic strategy to counter their growing influence. Analysts say Europe's ability to challenge the partnership is limited, since Moscow controls the Northern Sea Route and Beijing supplies cargo, vessels and industrial capacity. The route could cut Asia–Europe transit to 18 to 22 days, about 35% less than the 28 to 35 days via Suez. Arctic trade still accounts for roughly 0.3% of global shipping, with 37.02 million tonnes transiting the Northern Sea Route in 2025, and Roche estimates it could reach about 1% by 2030. Experts say the EU's leverage lies in expanding icebreaker capacity and maritime surveillance, but that this is not enough to reverse the structural advantages of Moscow and Beijing.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.