SpaceX raises $40 billion for GPUs as Musk predicts neocloud shakeout

SpaceX raises $40 billion for GPUs as Musk predicts neocloud shakeout

2 min read•Oct 26, 2026•
Ryan O'Connor
Ryan O'Connor

SpaceX has raised $40 billion in debt to buy GPUs, with Elon Musk warning of a neocloud shakeout, first reported by Coindesk. The financing highlights the gap between companies with revenue outside AI data centers and providers that rely on them as lenders become more selective about access to debt.

The $40 billion deal is mainly callable debt, meaning SpaceX can repay it early. The money could be used to pay for GPU deliveries expected in the first half of 2027, though Musk did not explicitly say so.

Musk said SpaceX could borrow because it has a strong credit rating and steady revenue from Starlink internet service and rocket launches. Those businesses do not depend on AI data centers, making chip financing easier for SpaceX than for companies that rely almost entirely on data-center revenue.

Neoclouds are newer companies that rent out AI computing power. Musk said debt markets had almost entirely shut off access to money for companies without substantial revenue independent of AI data centers, and predicted more than 200 neoclouds would consolidate, leaving only a few survivors.

The financing highlights a divide: SpaceX has non-AI revenue and a strong credit rating, while firms centered on AI data centers face a tougher borrowing environment. Financial markets have also grown increasingly concerned about the payoff from massive AI spending, pressuring AI-linked stocks and the broader market.

Palihapitiya had earlier said many neoclouds appear poorly funded and badly run. He argued that Amazon, Microsoft and Google were moving slowly on deals and preferred to keep computing power for their own use. Delays in building data centers, he said, could leave many chips and half-finished projects idle or unable to earn enough to cover financing costs in 2027.

Plug-in vehicles reach 32% of global registrations in September

Plug-in vehicles reached 32% of global registrations in September, first reported by Cleantechnica. Battery-electric vehicles accounted for 23% of registrations and set a record at 1.54 million, up 8% year over year, while plug-in hybrids fell 9%; year to date in 2026, BEVs were up 12% and PHEVs down 10%.

Global plug-in registrations rose 3% year over year to around 2.16 million in September, close to the all-time record of 2.17 million set last December.

Year to date, plug-in registrations were up 4% year over year: BEVs grew 12%, while PHEVs fell 10%. Their combined share for 2026 stood at 25%, with BEVs at 18% and PHEVs at 7%. The overall growth rate therefore hides a clear split between the two categories.

The Tesla Model Y led the model rankings with a record 165,000 registrations, up 17% year over year. Tesla Model 3 came second with 65,000, enough to move ahead of Geely Xingyuan and BYD Song despite a 4% annual decline.

BYD Song finished fourth at 54,519 registrations, up 19% and the fastest growth rate among the top five. An export push and the new-generation Ultra body helped lift the model.

At the make level, Tesla had a record 232,000 registrations, up 9% year over year. Toyota reached 61,332 for its fourth record in a row, finishing ahead of Volkswagen’s year-best 58,000 to become September’s best-selling legacy make.