SpaceX secures $40B debt to buy NVIDIA GPUs for AI
Business
SpaceX just locked in a massive $40 billion debt financing to buy NVIDIA GPUs, aiming to supercharge its artificial intelligence projects.
The deal, already closed, is backed by strong Starlink and rocket launch revenues.
Elon Musk is clearly betting big on AI as the next frontier for SpaceX.
SpaceX and Tesla plan terafab chips
SpaceX's revenue shot up 161% in the three months ended September 30 from a year earlier, but it's also spending fast: capital expenses nearly tripled thanks to investments in tech infrastructure.
Through its Terafab project with Tesla, SpaceX plans to roll out its own test chip around May or June of next year and start mass-producing chips by the third quarter of 2028.
Basically, they're not just buying tech: they want to build it themselves.