SpaceX closes $35.7bn debt agreement to acquire AI chips

✦ Meridian Analysis

SpaceX has signed and closed a $40 billion senior debt facility, equivalent to €35.7 billion, that will be used to purchase graphics‑processing‑unit (GPU) chips for its artificial‑intelligence programmes. The company acts as both issuer of the bonds and ultimate buyer of the hardware, tapping its investment‑grade credit rating and cash flow from Starlink and launch services to secure the financing. The lenders are providing a tranche of debt that can be drawn in the first two quarters of the year to fund the GPU acquisitions. The mechanics resemble a classic leveraged‑finance transaction in which a high‑credit‑quality borrower raises a sizable unsecured loan to finance a targeted cap‑ex spend rather than to refinance existing obligations. The deal shows the tightening of capital markets for AI‑related spend outside the traditional data‑center ecosystem, a point Musk has made on social media. Deal professionals will be watching for details that remain undisclosed, including the exact composition of the lending syndicate, covenant structure, and any equity kicker or warrant component. Confirmation of regulatory clearances for the GPU purchases and the timeline for drawing down the facility will also be material to assess the overall risk profile and execution risk of the financing.

The Meridian Weekly