SpaceX Closes $40B AI Deal

It's Benzinga, bringing Wall Street to Main Street. Elon Musk said Sunday that SpaceX closed $40 billion in debt financing to purchase graphics processing units for artificial intelligence computing, according to Reuters. Musk attributed the deal to SpaceX's investment-grade status and revenue from Starlink and launch operations. The company expects capital expenditures of $35 billion to $40 billion in the fourth quarter. Musk said debt markets have largely restricted financing for companies without substantial revenue outside AI data centers. He predicted consolidation and failures among neocloud companies and ruled out acquiring any. SpaceX's third-quarter revenue surged 161% to $14.58 billion, while AI revenue increased nearly tenfold to $7.56 billion. Its chipmaking venture with Tesla, Terafab, expects to produce its first test chip around May or June next year. For all things money, visit Benzinga.com.