SpaceX raised $40 billion in debt to buy GPUs for AI development. Musk said, "This is primarily callable debt for GPU purchases that will arrive in Q1 and Q2." The company saw revenue climb 161% to $14.58 billion by September 30, even as capital expenses tripled to $19.6 billion this year.
"This is primarily callable debt for GPU purchases that will arrive in Q1 and Q2. Not a major factor this quarter." Musk said in a post on X.
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The funding underscores the enormous capital requirement of the AI boom, as technology companies race to secure advanced processors and build out the computing infrastructure needed to support AI development.
SpaceX's revenue climbed 161% to $14.58 billion for the three months ended September 30 from a year earlier. The third quarter offered the clearest evidence yet that SpaceX’s heavy investment in AI is translating into revenue, even as spending on compute infrastructure remains enormous as capital expenses nearly tripled to $19.6 billion.
Prior to its blockbuster IPO, SpaceX listed "manufacturing our own GPUs" among the substantial capital expenditures it is undertaking in its S-1 statement, warning prospective investors of its big spending plans to develop AI and other technologies.