SpaceX signed an approximately $40 billion commitment with an Apollo Global Management entity to lease GPUs for its data centers. The master lease is expected to close before the end of 2026, with leases starting in the first half of 2027, and SpaceX will repay the principal in quarterly installments over roughly five years at a fixed rate that has not yet been determined. Elon Musk said debt markets have almost entirely cut off financing to companies whose revenue depends exclusively on AI, threatening a large portion of the more than 200 neoclouds in operation. CoreWeave, which carries roughly $50 billion in debt and whose unsecured bonds yielded about 15% in mid-October, illustrates the sector’s financing challenges. Chamath Palihapitiya expects 2027 to be turbulent, with more idle or underused computing capacity and further market consolidation.
Source: Read the original article
