Elon Musk stated on October 25, 2026, that debt markets have significantly restricted funding for AI data center companies that lack independent revenue streams. He noted that lenders are increasingly cautious as credit conditions tighten and borrowing costs rise.
In contrast, SpaceX successfully secured a $40 billion debt package, which will primarily be used to purchase Nvidia GPUs. The financing is scheduled to support hardware deliveries throughout the first and second quarters of 2027.
The SpaceX deal consists of a $10 billion loan and $30 billion in investment-grade debt. The company holds an investment-grade credit rating, supported by recurring revenue from its Starlink satellite internet service and rocket launch operations.
The debt package is callable, allowing SpaceX to repay the funds before the maturity date. Musk warned that more than 200 smaller AI cloud providers, referred to as neoclouds, face a difficult period, predicting that only a few will survive the current credit squeeze.
