Suryaa Now International Desk: Surya Global Tech & Business Bureau, Washington/New York: Leading private space agency for deployment of artificial intelligence (AI) infrastructure internationally... Surya Global Tech & Business Bureau, Washington/New York: Elon Musk, the founder of the company, has officially announced that the famous private space company SpaceX (SpaceX) has completed debt financing at a record level of 40 billion dollars (about Rs. 3.4 lakh crore) for the expansion of artificial intelligence (AI) infrastructure internationally. It has been revealed that these funds will be spent mainly on the purchase of Nvidia graphics processing unit (GPU) chips to be delivered in the first half (Q1, Q2) of next year. At the same time, in view of the capital crisis in the market, Musk made sensational comments that the survival of more than 200 'Neocloud' (Neocloud) companies running solely on loans will become questionable. Fund raising in the form of callable debt: Musk responded to this fund raising on the platform of 'X'.
He clarified that it is mainly prepaid/callable debt collected for GPU purchases. SpaceX's 'Investment Grade' (IG) credit status, Starlink satellite internet and steady cash flow from rocket launches made it possible to successfully acquire this huge loan, he explained. It is known that the company's Chief Financial Officer, Brett Johnson, has already clarified that SpaceX's capital expenditure (Capex) in the fourth quarter of this year may be in the range of 35 to 40 billion dollars. A severe crisis in the 'neocloud' market Musk's warning: Musk has issued severe warnings against small-scale cloud companies that have sprung up in the wake of the AI infrastructure boom. "SpaceX has managed to raise $40 billion in funding with strong revenue streams and an investment grade rating. But more than 200 'neocloud' companies without their own profits and cash flow will die in the coming days (guppy-level death and consolidation).
Very few companies will survive this pressure," he said. He also concluded that SpaceX has no plans to buy any distressed neocloud company, saying such an effort would be "totally unnecessary and pointless." Off-balance sheet debt structure: SpaceX has been wary of repeating the financial challenges it faced earlier trying to raise $20 billion in debt in a sale-leaseback deal with Elon Musk's AI startup 'xAI' Velar Equity Partners. Analysts expect this latest debt deal to be completed in an off-balance sheet structure as per norms. This huge deal undertaken by SpaceX is creating new vibrations in the global tech sector amid concerns about rising international bond yields and AI market valuations.