Musk said SpaceX has completed $40 billion in debt financing to purchase Nvidia chips needed to develop the artificial intelligence business. Musk posted on social media platform X that with investment-grade credit ratings and revenue from Starlink and rocket launch businesses, SpaceX has completed this off-balance sheet financing. However, people familiar with the matter said that as of Sunday, the parties were still negotiating the final pricing, and the deal has not yet been completed. Musk emphasized the diversification of SpaceX's business in an attempt to differentiate the company from so-called “new cloud service providers.” Such companies sell high-end computing power to technology companies, but in the past two weeks they have been closely scrutinized by investors due to high leverage and demand prospects. Musk said that in the past few weeks, the debt market has actually basically stopped providing financing to companies that lack significant sources of revenue outside of AI data centers. He expects that more than 200 new cloud service providers will experience large-scale elimination and integration, and only a few will survive. He later stated that SpaceX would not buy any new cloud service providers, believing that it was “pointless.” However, SpaceX also failed to completely avoid market concerns about the AI infrastructure boom. The media reported on Friday that at a time when the new cloud service provider was violently sold off, the off-balance sheet structure designed by SpaceX for 40 billion US dollars of financing was affected in the final pricing negotiations.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.