Business · Companies · 2 hrs ago

SpaceX borrows $40 billion to buy AI chips

SpaceX borrows $40 billion to buy AI chips

SpaceX has secured $40 billion in borrowing to buy graphics processors used in artificial intelligence computing.

Chief executive Elon Musk announced the financing on X, and the chips are expected to arrive in the first and second quarters.

SpaceX says its Starlink and rocket-launch income helped it get the loans, along with the company’s strong credit rating.

The planned purchases are chiefly funded by debt that can be called for repayment, and Musk said they would not have a major effect on the current quarter.

The financing shows the huge cost of building AI computing capacity as companies compete for advanced chips.

SpaceX’s revenue rose 161% year over year to $14.58 billion in the third quarter, while spending on equipment and infrastructure nearly tripled to $19.6 billion.

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Elon MuskSpaceX chief executive
For the current quarter, this is not a significant factor.
via Handelsblatt