SpaceX and Meta secure massive funding for AI infrastructure

SpaceX closed $40 billion in callable debt financing to purchase AI GPUs for data centers, with deliveries scheduled for the first and second quarters of next year. The company guided fourth-quarter capital expenditure to between $35 billion and $40 billion, with approximately 200,000 GB300 chips coming online monthly. Third-quarter capital expenditure was $19.66 billion, including $16.4 billion for SpaceX's super intelligence business. Simultaneously, Meta is raising up to $95 billion in fresh equity, with Goldman Sachs leading the placement. Nvidia, EMD, and Broadcom are subscribing to up to $5 billion of a new share class. Elon Musk stated that debt markets have shut off access to companies without substantial non-AI revenue, predicting a "guppy level death" and consolidation among over 200 neoclouds. Chamath Palihapitiya argued that neoclouds are poorly capitalized and that 2027 will be a turbulent consolidation year, benefiting non-bureaucratic big scalers and nimble players. He noted that hyperscalers like Amazon and Google will prioritize internal compute needs over third-party providers during shortages. Market participants interpreted these deals as a signal that capital for AI remains abundant, despite warnings about neocloud credit risks. The S&P 500 rose 0.7 percent, while the SOX index jumped 2.8 percent, its best day in over a month.