Tag: ElonMusk

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Musk’s SpaceX secures $40 bn debt for AI chips

SpaceX has secured $40 billion in debt financing to purchase advanced processors for artificial intelligence (AI) computing, according to CEO Elon Musk. The deal highlights the enormous financial commitments required to expand AI infrastructure as technology companies compete to build more powerful computing systems and support increasingly sophisticated AI models.

Musk announced the financing in a post on X on October 25, saying the borrowing would primarily fund graphics processing units (GPUs) expected to arrive in the first and second quarters of 2027. He described the financing as callable debt and said it would not have a major impact on the company’s current-quarter financial position.

The announcement follows reports earlier this month that SpaceX was negotiating with banks and asset managers to raise $40 billion for Nvidia AI chips. However, subsequent reporting indicated that discussions over final pricing were still ongoing, leaving some uncertainty about the precise status and structure of the financing.

The proposed funding reflects the growing cost of developing AI computing capacity. GPUs are specialised processors that handle the enormous calculations required to train and operate modern AI models. Technology companies are racing to secure these chips as demand for generative AI, cloud computing and data-centre services continues to expand.

SpaceX‘s financing also demonstrates how Musk is positioning the company beyond its traditional rocket-launch and satellite-internet businesses.

Why SpaceX needs the funding

SpaceX plans to expand its AI computing infrastructure using Nvidia processors. These chips can power large-scale data centres that supply computing resources for training AI systems, running applications and supporting enterprise customers.

Building such infrastructure requires substantial spending on processors, networking equipment, power supplies, cooling systems and data-centre facilities. Companies must often commit billions of dollars before their investments generate sufficient revenue, making access to financing a critical part of the AI race.

Musk said SpaceX’s investment-grade credit standing and income from its Starlink satellite-internet service and rocket-launch operations had helped preserve its access to debt markets. These established businesses provide revenue beyond AI computing, potentially making the company more attractive to lenders than firms dependent entirely on AI data centres.

SpaceX’s financial performance has also strengthened its position. Its revenue rose 161% year-on-year to $14.58 billion in the third quarter of 2026. Capital expenditure, however, nearly tripled to $19.6 billion, reflecting the scale of investment required to support its expanding operations.

The figures underline the balance SpaceX must maintain between growth and financial discipline. Access to credit can accelerate its AI expansion, but the company must also ensure that its growing computing capacity generates enough business to justify the expense.

Financing structure remains under scrutiny

Although Musk said the debt deal had closed, reports on October 26 indicated that negotiations over pricing were continuing. Bloomberg reported that bankers led by Goldman Sachs had been discussing a financing structure with investors, including Apollo Global Management, while Apollo-backed Atlas SP was expected to manage the financing vehicle.

The proposed arrangement was designed to keep the borrowing outside SpaceX’s direct balance sheet, according to reports. However, the final terms, including pricing and other financing details, were not fully established in the publicly available reporting.

The distinction matters because the cost of borrowing influences how much a company ultimately pays for its AI infrastructure. It also determines how financing risks are distributed between the company, investors and other participants.

Musk warns of pressure on AI cloud companies

Alongside the funding announcement, Musk warned that access to debt was becoming increasingly difficult for companies without substantial revenue outside AI data centres. He predicted widespread failures and consolidation among more than 200 so-called neocloud companies.

Neocloud providers specialise in offering computing capacity, often using high-performance GPUs, to AI developers and businesses. Their services allow customers to access powerful hardware without building their own data centres. However, these providers can face financial pressure when infrastructure costs rise faster than customer revenue.

Musk argued that companies with diversified income streams would be better placed to withstand tighter lending conditions. He also said SpaceX would not acquire struggling neocloud businesses.

His comments come as investors assess whether the rapid expansion of AI infrastructure can deliver sustainable returns. Demand for computing power remains strong, but the expense of purchasing chips and operating data centres has increased the financial risks associated with the sector.

AI investment enters a costly phase

SpaceX’s $40 billion financing plan illustrates how the AI race is becoming a competition for capital as well as technology. Access to advanced chips is essential, but companies must also secure affordable funding, reliable electricity and customers willing to pay for computing services.

For Nvidia, the financing highlights the continued importance of its GPUs to large-scale AI development. For SpaceX, the investment could provide the computing resources needed to expand its AI ambitions, although the returns will depend on execution and demand.

The coming quarters will show how effectively SpaceX converts its infrastructure spending into revenue. Its established satellite and launch businesses offer financial support, but the scale of its AI investment leaves little room for inefficient spending.

As AI companies seek ever-larger pools of computing power, financing costs and access to credit are likely to become increasingly important. SpaceX’s deal is a significant example of that shift, while Musk’s warning suggests that the next stage of the AI boom could separate well-funded companies from those struggling to sustain their expansion.

 

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Musk backs potential Tesla-SpaceX merger

Elon Musk has confirmed that Tesla and SpaceX have formed special committees to explore a possible merger, bringing his electric vehicle and space technology businesses closer to a potential historic corporate deal. Musk has described the idea as a good one, but stressed that any agreement will depend on the committees’ assessment and shareholder approval.

The announcement came on October 20, during SpaceX’s third-quarter earnings call, where the company also reported a sharp rise in revenue and its first profit as a public company. The proposed merger could bring electric vehicles, rocket launches, satellite internet and artificial intelligence (AI) operations under a single corporate structure.

“I think it would be a good idea, but it’s really up to the special committees of both companies,” Musk said, according to Reuters, adding that he could not participate in their discussions because of his conflicting interests.

Tesla-SpaceX merger talks gather momentum

The potential merger could represent a major step towards consolidating Musk’s business empire. Tesla focuses on electric vehicles, battery technology, energy storage and autonomous driving, while SpaceX operates rockets and the Starlink satellite internet network and is expanding its AI computing business.

The two companies have increasingly overlapping ambitions, particularly in artificial intelligence, robotics and advanced computing infrastructure. Combining their operations could allow them to share resources, coordinate investments and develop technologies that support multiple businesses.

However, no final agreement has been announced. The independent committees must examine whether a merger would benefit shareholders, while any proposed transaction would also face regulatory scrutiny.

A combined business could be valued at more than $3.5 trillion, according to estimates cited in media reports. Such a deal would rank among the largest corporate combinations, although its eventual valuation and structure would depend on the terms agreed by both companies.

SpaceX revenue jumps 161% in third quarter

The merger discussions coincided with a strong financial performance from SpaceX. The company reported revenue of $14.58 billion for the three months ended September 30, 2026, up 161% from a year earlier.

SpaceX recorded net income of $4.4 billion, compared with a loss of $1.1 billion in the same quarter last year. Its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) also increased sharply, reflecting growth across its businesses.

Artificial intelligence was the biggest contributor to the revenue surge. SpaceX’s AI business generated approximately $7.56 billion, nearly ten times its revenue a year earlier. Much of this income came from renting computing capacity at data centres to AI developers, rather than from selling its own AI models.

SpaceX has been investing heavily in computing infrastructure to meet demand from companies developing advanced AI systems. The business has become increasingly important to its financial outlook, even as the company continues spending on rockets and satellite technology.

Chief financial officer Bret Johnsen said SpaceX expected annual recurring revenue of around $100 billion by the end of 2026. The company is planning capital expenditure of $35 billion to $40 billion in the fourth quarter, underscoring the scale of its expansion plans.

Starlink remains a key growth driver

SpaceX’s satellite internet service, Starlink, continued to expand, reaching 13.6 million subscribers during the third quarter. The service provides broadband connectivity in markets where traditional internet infrastructure may be limited or difficult to deploy.

Starlink is an important part of SpaceX’s business because it generates recurring revenue from consumer, enterprise and government customers. Its satellite network also supports the company’s broader ambitions in communications and space infrastructure.

However, expansion into new markets with lower-priced plans has put pressure on average revenue per subscriber. This could become a challenge as SpaceX seeks to grow its customer base while maintaining profitability.

The company is also developing Starship, its next-generation reusable rocket system. The vehicle is expected to support future space missions, expand Starlink deployments and potentially enable ambitious plans for computing infrastructure in orbit. Starship, however, has yet to enter regular commercial service, and its development continues to involve significant costs and technical risks.

What a merger could mean for Tesla

For Tesla, a merger could provide closer links to SpaceX’s satellite network and computing capabilities while supporting its ambitions in autonomous driving and robotics. Tesla is investing in self-driving technology, robotaxis and its Optimus humanoid robot programme, all of which depend on advances in software, AI and computing power.

Supporters of a merger may argue that combining the businesses could improve coordination and give Musk greater flexibility to direct capital towards shared technological priorities.

However, investors will also need to consider the risks. Tesla and SpaceX operate in different industries, face different regulatory requirements and have distinct capital needs. A combined company would have to balance spending on electric vehicles, rocket development, satellite communications and AI infrastructure.

Governance is another important issue. Since Musk leads both businesses, the independent committees will need to evaluate the proposal carefully. Shareholders must ultimately decide whether the potential benefits justify the financial and operational risks.

No deal has been finalised

For now, the discussions remain exploratory. The next steps will involve the committees’ assessments, possible negotiations over the terms and a decision on whether to put a formal proposal before shareholders.

The strong SpaceX earnings report gives Musk additional momentum as he pursues his wider technology ambitions. Yet the proposed merger is not guaranteed, and regulatory approvals could add further complexity.

If the deal moves forward, it could reshape the relationship between electric mobility, space technology and artificial intelligence. Until then, investors will be watching for clearer details on the proposed structure, valuation and expected benefits.

 

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Musk pledges SpaceX shares for every American child

Elon Musk has pledged to give one share of SpaceX to every child in the United States next year, potentially distributing stock worth more than $10 billion. The announcement has drawn attention to the billionaire’s approach to philanthropy and comes shortly after artificial intelligence company Anthropic revealed plans to dedicate part of its equity to a public-benefit fund.

Musk announced the proposed giveaway in a post on X on October 19. He said every child in America would receive one of his SpaceX shares in 2027, describing the initiative as the first of many such gifts. However, he did not explain how the shares would be distributed, who would qualify or when recipients could expect to receive them.

The potential scale of the giveaway is substantial. The United States has around 72 million to 73 million children under the age of 18, according to population estimates. SpaceX shares closed at $146.03 on October 16. At that price, distributing one share to each child would represent a total value of approximately $10.5 billion to $10.7 billion.

The final value could change with the share price and the number of eligible recipients. Musk has also not clarified whether his use of the phrase “every kid in America” includes all children living in the country or only American citizens.

The proposal would be a major philanthropic commitment, but several practical questions remain unanswered. SpaceX and Musk have yet to provide a detailed distribution framework, including how the shares would be transferred, how recipients would be identified and whether the plan would operate through an existing investment programme.

The announcement followed a development at Anthropic, the artificial intelligence company behind the Claude chatbot. On October 18, Anthropic said it would commit 5% of its shares to a newly established Anthropic Public Benefit Fund. The fund is intended to support public-interest initiatives and could make substantial donations to non-profit organisations or provide direct distributions to selected groups.

Anthropic also said its board could allocate an additional 2% of the company’s shares for every 50% increase in its valuation above a specified threshold. The arrangement is designed to allow the fund’s resources to grow as the company expands.

Musk responded to Anthropic’s announcement by suggesting that shares should be given directly to the public rather than placed in a fund. He subsequently announced his own plan to distribute SpaceX stock to children across the United States. The timing drew comparisons between the two approaches, although Musk has not provided details showing how his proposal would work in practice.

SpaceX is central to Musk’s business interests. The company operates rockets and satellite internet services through Starlink and has expanded its activities in artificial intelligence. Musk holds a substantial stake in the company, making a distribution from his personal holdings potentially possible on a large scale.

However, the transfer of privately held or restricted shares to millions of recipients could involve significant legal, financial and administrative work. The process would need to address ownership records, eligibility, tax treatment and the management of shares belonging to minors.

One possible route is the Trump Accounts programme, a US initiative that allows eligible children to build investment savings. The programme has attracted contributions from wealthy donors and business leaders. It is not yet clear whether Musk intends to use these accounts or establish a separate arrangement for the SpaceX shares.

SpaceX president Gwynne Shotwell and her husband, Robert, have previously pledged shares for the accounts of more than two million children. Their contribution focused particularly on children in lower-income communities in Texas, where SpaceX has a significant presence. The initiative provides an example of how company stock could be directed towards children’s long-term savings.

The Trump Accounts programme has also received a major contribution from Michael and Susan Dell, who pledged $6.25 billion to support children’s accounts. The growing participation of wealthy donors has raised expectations that company shares and other investments could become a larger part of philanthropic giving.

Musk’s proposed giveaway also comes amid wider debate over how the benefits of artificial intelligence and technological progress should be distributed. Musk has argued that advances in automation and AI could eventually create widespread abundance. At the same time, researchers and industry leaders have warned that rapid AI development could disrupt jobs and increase economic uncertainty.

Anthropic has cited the potential effects of AI on workers as part of the rationale for its public-benefit fund. The company has said the fund could support efforts to address labour-market disruption and other social challenges linked to technological change.

Receiving a SpaceX share could offer children an early introduction to investing and the potential long-term value of owning company stock. But a share’s market value can rise or fall, and the proposed gift should not be treated as a guaranteed financial benefit.

 

 

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Tesla unveils new Roadster with flying features

Elon Musk has given the world a glimpse of what he calls the future of driving, unveiling a redesigned Tesla Roadster that can perform mid-air flips and land back on its wheels. The dramatic demonstration has reignited interest in flying cars, although the technology shown so far is closer to a vehicle making short airborne manoeuvres than a car capable of flying long distances.

The new Tesla Roadster was presented on October 15 at a SpaceX testing facility in McGregor, Texas. The event featured a prototype driving up a curved ramp, travelling upside down with the help of a suction system, then lifting off, rotating in the air and landing. The vehicle was also shown jumping over a line of Tesla cars. The demonstration was streamed online, bringing the long-awaited electric sports car back into the spotlight.

Musk, Tesla’s chief executive and the founder of SpaceX, described the vehicle as a flying car and said it could “basically fly like a rocket”. The Roadster combines Tesla’s electric-car engineering with technology developed by SpaceX, Musk’s aerospace company. The use of thrusters is the key difference between this version and a conventional electric sports car.

The demonstration showed two technologies working together. A suction system helps the car grip a specially designed curved ramp, allowing it to travel upside down during the staged demonstration. SpaceX-derived cold-gas thrusters then provide the force needed for the airborne manoeuvres.

The thrusters use pressurised gas rather than a conventional rocket engine burning fuel. The system can generate short bursts of thrust, helping the vehicle lift, rotate and return to the ground. Tesla has also discussed altitude controls and additional thrusters positioned at the rear.

The demonstration was remotely controlled, according to Musk, as a safety precaution. While the video showed the car briefly leaving the ground and completing a controlled landing, it did not demonstrate sustained flight, long-distance air travel or the ability to navigate through the sky like an aircraft.

That distinction matters. A vehicle capable of brief airborne movements is not necessarily a practical flying car. Engineers would still need to address stability, control, passenger protection, energy use and safe operation in different conditions before such technology could be used routinely.

The Roadster has been one of Tesla’s most anticipated projects. Musk first unveiled the second-generation model in 2017, promising a high-performance electric car that would challenge petrol-powered sports cars. Production was initially expected much earlier, but the project faced repeated delays as Tesla focused on other vehicles and technologies.

The latest demonstration has revived the project, but customers will have to wait. Musk has said production is expected to begin in 2028, nearly a decade after the second-generation Roadster was first revealed. That remains a future target rather than confirmation that customer deliveries will begin on a fixed date.

The vehicle is expected to sit at the premium end of the electric-car market. Reports following the unveiling put its expected price above $200,000, although final pricing and specifications have not been fully settled. Tesla’s reservation information also indicates different entry requirements for versions with different capabilities.

Musk himself acknowledged that the vehicle’s flying features may not be legal in every jurisdiction. Tesla has indicated that the flying function is not permitted on public roads, underlining the gap between a technology demonstration and a commercially approved product.

Road vehicles must meet strict safety standards covering braking, steering, crash protection and other systems. Adding propulsion equipment capable of lifting a car introduces further challenges, including how to protect passengers and people nearby if a manoeuvre fails. Regulators would also need to determine which rules apply when a vehicle operates both on the road and in the air.

The prototype’s performance claims also need to be treated carefully. Musk has said the Roadster could accelerate from zero to 60 miles per hour in less than a second. That is an extraordinary target, but independent testing and final production specifications will be needed to establish what buyers can actually expect.

The new Roadster is more than a sports car launch. It is a showcase of how Tesla hopes to combine electric mobility with technologies developed across Musk’s wider business interests. The use of SpaceX engineering could help the company stand out in a crowded electric-vehicle market, where manufacturers are competing on performance, software and innovation.

Still, a high-profile demonstration does not guarantee a successful product. Tesla must turn the prototype into a vehicle that can be manufactured reliably, priced clearly and operated safely. It will also need to prove that the headline-grabbing features can work outside a controlled test environment.

 

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Mukesh Ambani responds to Musk over Starlink India

Reliance Industries has pushed back against Elon Musk’s allegations that powerful business interests are holding back Starlink’s launch in India, saying it welcomes competition but expects every company to follow the country’s laws. The response has added a fresh twist to the growing contest over satellite internet services, with Starlink now saying it is ready to connect Indian customers.

The dispute between Mukesh Ambani’s Reliance and Musk’s SpaceX comes as satellite broadband providers seek regulatory clearance to begin commercial operations in India. The outcome could influence how quickly satellite internet reaches remote areas, how companies compete for customers and what choices consumers have beyond traditional mobile and broadband networks.

In a statement posted on X on October 16, Reliance said it had never feared competition and viewed it as the best test of which company serves customers well. The company did not name Musk directly but said it wanted to clarify the facts following recent remarks about Reliance and the Indian market. <escape></escape>

Reliance also pointed out that its own satellite communication services under Jio were awaiting government clearances. It said the government applied the same process to Indian and foreign applicants, adding that investment and innovation must operate within the rule of law.

The statement highlighted Jio’s growth since it entered India’s highly competitive telecom market in 2016. Reliance said Jio had grown from a new entrant with no customers to a business serving more than 530 million people. The company presented that experience as evidence that it was not afraid of competition and would compete on customer service and affordability.

Musk’s criticism has been sharper. The SpaceX chief executive accused unnamed influential business interests of trying to prevent Starlink from entering India to protect their market positions. He later singled out Ambani, questioning why Starlink had not received final approval despite years of work to meet Indian requirements.

Musk also argued that more competition would benefit Indian consumers by giving them greater choice, even if it reduced the profits of established telecom companies. In another post, he sarcastically referred to Ambani as “Prime Minister Ambani”, suggesting that the industrialist had undue influence over the process.

The Indian government has rejected claims that the regulatory system favours domestic companies. Officials have said satellite communication applicants are undergoing security assessments and must satisfy the relevant conditions before launching commercial services. <escape></escape>

The debate moved forward on October 17, when Starlink responded to Reliance’s statement. The company said it had worked with regulators, industry and operators in India for more than five years and had built dedicated systems, gateways and other infrastructure within the country. It said the infrastructure had the necessary government approvals and that Starlink was ready to provide high-speed internet services in India. <escape></escape>

However, readiness to provide a service does not automatically mean commercial operations can begin. Satellite operators must meet applicable security requirements and obtain spectrum assignments under India’s regulatory framework. The government is also working on the framework for charging satellite operators for spectrum use.

Starlink is not the only company pursuing this opportunity. Reliance’s Jio Satellite Communications and Bharti-backed Eutelsat OneWeb are also seeking to provide satellite internet services in India. Communications Minister Jyotiraditya Scindia has said the government does not intend to allow a monopoly in the sector and that operators must meet the required conditions.

Bharti Enterprises chairman Sunil Bharti Mittal has also said that OneWeb applied earlier and is ahead in the approval queue. The competing claims underline how important regulatory timing has become for companies preparing to enter India’s satellite broadband market.

Satellite internet can be particularly useful in villages, remote regions and areas where laying fibre-optic cables or expanding mobile networks is difficult or expensive. Low-Earth-orbit satellites can provide connectivity across large areas without relying entirely on conventional ground-based telecom infrastructure.

For consumers, the real test will be the quality, price and availability of the services once commercial launches are permitted. More providers could improve access and give households, businesses and institutions additional options, although affordability and coverage will depend on each company’s plans and technology.

The immediate issue remains regulatory clearance, not simply the public exchange between two business leaders. Reliance says it welcomes Starlink, while Starlink says its infrastructure is ready. The next step will depend on the government’s approval process and whether each operator meets all the conditions required to serve customers in India.

 

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Musk renews attack on Ambani over Starlink

Elon Musk has intensified his public criticism of Reliance Industries chairman Mukesh Ambani over the delay in launching Starlink satellite internet services in India, sarcastically addressing the Indian billionaire as “Prime Minister Ambani” and accusing him of protecting existing telecom interests from competition.

In his latest post on X, Musk argued that Starlink could bring internet connectivity to underserved communities, improve educational opportunities for children and help small businesses reach customers worldwide. He questioned whether Ambani would allow Starlink to compete in India, alleging that established players preferred to maintain their dominance in the market.

The remarks mark another escalation in the dispute over Starlink’s entry into India, one of the world’s largest internet markets. However, Musk has not provided evidence to substantiate his allegation that Ambani is deliberately obstructing the launch.

The Indian government has rejected claims that powerful business interests are influencing the approval process. Telecom Minister Jyotiraditya Scindia said India does not permit monopolies in any sector, pushing back against Musk’s allegations.

The Ministry of Communications has also maintained that the regulatory framework for satellite communications is fair and non-discriminatory. According to the government, Starlink and two other satellite internet operators are at broadly the same stage of the approval process and must complete security assessments before receiving satellite spectrum.

Starlink, operated by Musk’s aerospace company SpaceX, has spent several years preparing to enter the Indian market. Despite securing key regulatory clearances and establishing partnerships with domestic telecom companies, it has yet to receive the final approvals required to begin commercial services.

The latest confrontation follows Musk’s earlier accusation that unnamed “oligarchs” were blocking Starlink’s entry to preserve their hold over India’s telecommunications sector. He described the alleged obstruction as harmful to consumers, particularly people living in areas with limited internet access.

Musk subsequently singled out Ambani, asking whether the Reliance chairman was the “real boss of India”. His latest remarks continued that line of criticism, suggesting that Starlink’s delayed launch was preventing Indian consumers from accessing an alternative internet service.

Reliance Jio, the telecom arm of Ambani-led Reliance Industries, is India’s largest mobile operator. Bharti Airtel, led by Sunil Bharti Mittal, is another major player in the sector. Both companies are also pursuing satellite broadband opportunities, putting them in the same emerging market as Starlink.

The competition is particularly significant because satellite internet can connect locations where conventional mobile networks and fibre-optic broadband are difficult or expensive to deploy. Remote villages, mountainous regions, islands and areas affected by natural disasters could benefit from reliable satellite-based connectivity.

Starlink uses a constellation of low-Earth-orbit satellites to deliver broadband internet. Unlike traditional geostationary satellite systems, its satellites operate closer to Earth, helping reduce signal delays. The service has expanded internationally, but entering India requires compliance with the country’s licensing, security and spectrum rules.

SpaceX has said it is ready to serve Indian customers. Starlink has reportedly established more than 20 gateway sites in the country, along with hundreds of antennas, as part of its preparations. Gateway stations connect the satellite network to terrestrial internet infrastructure and are an important part of delivering the service.

The company has also said it has adapted its operations to meet Indian requirements concerning security and data sovereignty. However, authorities have maintained that the remaining assessments must be completed before commercial operations can begin.

The disagreement is not new. Starlink and Reliance Jio previously clashed over how satellite spectrum should be allocated. Musk’s company supported administrative allocation, while Jio argued that spectrum should be auctioned, a process it believed would create a level playing field between satellite and terrestrial telecom providers. The government ultimately opted for administrative allocation.

Despite their differences, SpaceX signed distribution agreements with Reliance Jio and Bharti Airtel in 2025. These arrangements were intended to help make Starlink services and equipment available in India once regulatory approvals were secured. The partnerships highlight the complicated relationship between potential competitors and prospective distributors.

Airtel has links to Eutelsat OneWeb, another satellite communications operator seeking to provide services in India. Jio is working with Luxembourg-based SES on satellite broadband. Both companies therefore have their own commercial interests in the development of satellite internet.

The debate has wider implications for India’s digital connectivity ambitions. Satellite broadband could complement existing mobile and fibre networks, particularly in underserved regions, but operators must also address concerns about national security, lawful interception and control over communications infrastructure.

The government says all operators must complete the required procedures, while Musk continues to demand faster entry and greater competition. Whether the dispute leads to further regulatory clarification or simply intensifies the public exchange remains to be seen.

Ultimately, the outcome will matter not only to SpaceX and India’s telecom giants but also to consumers waiting for more choices in broadband connectivity. A successful launch could expand internet access in remote areas, while the unresolved approval process underscores the challenge of balancing innovation, competition and national security.

 

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SpaceX aeeks $40 bn to power Musk’s AI ambitions

Elon Musk’s SpaceX is looking beyond rockets and satellites. The company is now preparing to spend tens of billions of dollars on artificial intelligence infrastructure, with plans to raise about $40 billion to buy Nvidia’s advanced AI chips.

SpaceX is in discussions with banks and asset managers to arrange the financing, according to people familiar with the matter. The proposed package is expected to include around $10 billion in bank loans and another $30 billion through investment-grade debt. Apollo Global Management is expected to lead the transaction and help place the debt with investors, while PIMCO is among the lenders that have been in talks. The deal is expected to close in 2027.

The size of the proposed financing highlights just how expensive the race to build AI computing capacity has become. Technology companies are spending heavily on Nvidia graphics processing units, data centres, power infrastructure and networking equipment as they compete for the computing resources needed to develop and run increasingly sophisticated AI systems.

SpaceX is positioning itself as a major player in that race.

Musk has said SpaceX intends to use Nvidia hardware exclusively for its data centres. He has also indicated that the Colossus 2 data centre operated by his AI venture xAI could more than double its Nvidia chip capacity by December.

The strategy marks a significant expansion of SpaceX’s role. The company is best known for its Falcon rockets, Starlink satellite network and increasingly ambitious space projects. Its growing focus on data centres suggests that computing power could become another major part of Musk’s technology empire.

The proposed $40 billion financing is expected to give SpaceX access to a large supply of Nvidia’s latest AI processors without requiring the company to fund the entire purchase from its own cash reserves.

The move also shows how the AI boom is increasingly being financed through debt markets. Morgan Stanley estimates that AI infrastructure could require about $1.5 trillion in external financing by 2028. Companies need enormous amounts of capital not only to purchase chips but also to construct data centres and secure the electricity and other infrastructure required to operate them.

Apollo’s expected role is particularly significant. The investment firm has been expanding its presence in technology financing and recently led a major chip financing transaction involving processors from Nvidia rival Broadcom.

Nvidia itself has also been working to bring more capital into the AI infrastructure ecosystem. In August, the chipmaker announced partnerships with major financial firms including Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR. Those financing platforms are intended to mobilise more than $500 billion for AI infrastructure projects.

The SpaceX transaction would therefore fit into a much larger shift in how the AI industry is being funded. Instead of relying only on technology companies’ balance sheets or traditional venture capital, increasingly large pools of institutional money are being directed towards the physical infrastructure behind AI.

SpaceX’s own financial position makes the borrowing plan notable. The company raised $86 billion through its initial public offering in June and subsequently sold $25 billion of high-grade bonds. Its decision to raise additional debt so soon reflects the enormous scale of its planned capital expenditure.

Investors, however, will also be watching the company’s borrowing closely. SpaceX’s bonds came under pressure after its earlier debt sale as concerns emerged about rising leverage and heavy spending. The new financing could add further scrutiny over how quickly the company is expanding its balance sheet.

The proposed purchase would be a major boost for Nvidia, which dominates the market for high-end AI processors. Musk has previously praised Nvidia’s latest architecture and said SpaceX had decided to build its AI infrastructure exclusively around Nvidia technology.

The deal could also deepen the relationship between Musk and Nvidia CEO Jensen Huang. Nvidia has financial ties to Musk’s wider AI ecosystem and has been positioning itself not simply as a chip supplier but as a participant in the financing and development of the broader AI infrastructure market.

SpaceX’s proposed borrowing ultimately reflects a simple reality: AI requires enormous amounts of computing power, and computing power requires enormous amounts of money.

Musk appears willing to make that bet at scale. If the financing goes ahead, SpaceX will be committing billions of dollars to Nvidia chips and data-centre infrastructure even as the company continues spending heavily on rockets, satellites and space technology.

The next phase of Musk’s technology ambitions may therefore be as much about machines on Earth as missions beyond it. SpaceX’s $40 billion chip financing plan shows how rapidly the boundaries between space technology, artificial intelligence and computing infrastructure are beginning to disappear.

 

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Musk alleges India Starlink block

Elon Musk has accused unnamed “oligarchs” of blocking Starlink’s entry into India, escalating a dispute over the satellite internet company’s long-awaited commercial launch.

Musk, the chief executive of SpaceX, said on social media that “certain oligarchs” were trying to prevent Starlink from entering the Indian market to protect what he called a “monopolistic chokehold” over consumers. He did not identify any individual or company, but said the alleged obstruction was a “crime against the people of India”.

The Indian government has rejected the allegation, saying the country’s regulatory framework for satellite communications is fair and non-discriminatory. The Communications Ministry said all three licensed satellite communication operators are currently undergoing security assessments and are broadly at the same stage of the approval process.

The confrontation comes as Starlink remains close to launching its satellite broadband service in India but is still waiting for several regulatory clearances.

Starlink has spent nearly five years preparing for the Indian market. The SpaceX subsidiary has obtained a Global Mobile Personal Communication by Satellite (GMPCS) licence from the Department of Telecommunications and authorisation from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

The company has also invested in local infrastructure and established 20 gateway sites with hundreds of antennas, according to Lauren Dreyer, Starlink’s vice-president of business operations. Speaking at the India Mobile Congress, Dreyer said Starlink had designed its India operations around the country’s security requirements and had put controls in place to keep Indian user data within the country.

“We stand ready to serve India,” Dreyer said, adding that the company was prepared to work with the government, telecom operators and other industry participants.

Starlink has also signed agreements with Reliance Jio and Bharti Airtel, two of India’s largest telecom companies, to explore bringing its satellite internet service to customers.

The government’s response has shifted the focus from alleged commercial interference to the regulatory process itself.

The Communications Ministry said security assessment is currently underway for all three licensed satellite operators. Once the process is completed for an operator, it can move to the next stage of seeking spectrum assignment.

The three companies include Starlink, Jio Satellite Communications and Eutelsat OneWeb India Communications. The government has maintained that the same regulatory framework applies to all satellite communication providers.

Officials therefore argue that Starlink is not being singled out. The ministry described suggestions that the framework was unfair or discriminatory as “baseless and misconceived”.

Obtaining a satellite communication licence is only one part of the process for Starlink.

The company still faces security-related requirements, foreign investment approval and the final steps involved in spectrum assignment. India has placed particular emphasis on lawful interception, data localisation and the ability of authorities to control satellite services during emergencies or security situations.

These requirements are significant because Starlink operates a global network of low-Earth orbit satellites. Its satellites can transmit data between one another through inter-satellite links before routing traffic to ground stations, raising questions about how Indian authorities can monitor and control traffic originating within the country.

 

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Leaders

Elon Musk renames SpaceXAI as SpaceXSI after Trump

Elon Musk is renaming SpaceX’s artificial intelligence unit from SpaceXAI to SpaceXSI, bringing one of his technology businesses in line with US President Donald Trump’s push to replace the term “artificial intelligence” with “super intelligence”.

Musk confirmed the change on X after a user asked whether SpaceXAI would be renamed SpaceXSI. “Yes, we will make that change,” Musk replied. He also endorsed the new terminology, saying there would be “no more AI” and that “SI is better”.

The proposed rebranding comes just days after Trump signed an executive order directing the US executive branch to use “Super Intelligence” or “SI” instead of “Artificial Intelligence” or “AI” in official communications. The order says the change is intended to reflect the rapidly advancing capabilities of the technology.

For Musk, it  adds another twist to the rapidly evolving identity of his AI business, which has already gone through a major corporate transition this year.

SpaceX acquired Musk’s artificial intelligence company xAI earlier this year, bringing the two businesses together. The AI operation later adopted the SpaceXAI name and a new identity in July. If Musk’s latest announcement is implemented, SpaceXSI will become the unit’s third name this year.

The company is behind Grok, Musk’s AI chatbot, and operates large-scale computing infrastructure used to train and run its AI models. Its growing computing capacity is central to Musk’s ambitions to develop increasingly powerful AI systems.

The latest name change does not appear to involve an immediate change to the technology itself. Musk has not announced any new product, model or technical development alongside the proposed rebranding. There is also no confirmed date for when SpaceXAI will officially become SpaceXSI.

As of Monday, the company’s online presence was still using the SpaceXAI name, while Musk had provided no further details about the transition.

The timing is significant because Trump has been increasingly using super intelligence as the preferred description for advanced AI. In a September speech, the US president said official US documents would move away from the word “artificial” and use “super intelligence” instead. His administration has since begun building a broader policy framework around the new terminology.

Trump’s executive order requires federal departments and agencies to use “Super Intelligence” and “SI” in official correspondence, public communications and policy documents. It also asks the White House science and technology adviser to develop a federal definition of the term and determine whether further executive action is needed.

The shift has attracted attention across the technology industry because AI is already the established global term for a broad range of technologies, from chatbots and image generators to autonomous systems and machine-learning tools. Changing the terminology does not itself alter how those systems work.

Musk’s decision nevertheless shows how quickly political language around AI can influence the technology sector. By adopting SpaceXSI, he is among the most prominent technology leaders to publicly embrace Trump’s preferred terminology.

The move also reflects Musk’s increasingly close involvement in the US debate over AI policy and superintelligence. He was among technology leaders who recently signed a White House accord focused on superintelligence. The voluntary agreement calls on companies developing advanced AI systems to introduce stronger internal controls and independent oversight.

The White House has also announced a new Super Intelligence Force, aimed at coordinating government efforts around advanced AI and maintaining US leadership in the technology race. The initiative comes as Washington places greater emphasis on competing with China while addressing concerns about the rapid development of powerful AI systems.

Still, the unusual speed of the name changes has generated plenty of discussion online. SpaceXAI was only introduced months ago, and the proposed switch to SpaceXSI means users and customers may once again have to adjust to a new corporate identity.

Whether the new name lasts remains to be seen. But the decision has already placed SpaceXSI, Elon Musk, AI rebranding and Trump’s super intelligence push at the centre of a new conversation about how the world’s most powerful technology should be described.

 

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Leaders

Trump-Xi dinner draws Musk, Cook, Altman

US President Donald Trump hosted Chinese President Xi Jinping at a White House state dinner, bringing together senior US officials, technology executives and some of the world’s most prominent business leaders. The September 24 dinner came during Xi’s three-day visit to Washington and followed talks between the two leaders on trade, artificial intelligence, Taiwan and other areas of tension.

The guest list stood out for the number of technology leaders in attendance. Tesla and SpaceX chief Elon Musk, Apple chairman Tim Cook and OpenAI CEO Sam Altman were among the prominent names at the dinner. Nvidia CEO Jensen Huang, Amazon founder Jeff Bezos, Meta CEO Mark Zuckerberg, Microsoft CEO Satya Nadella and Google’s Sundar Pichai were also invited.

Musk and Huang were seated at the head table with Trump, Xi and their wives, Melania Trump and Peng Liyuan. AMD CEO Lisa Su and Cook were also among those seated close to the two presidents. The presence of leaders from companies at the centre of the global AI and semiconductor industries gave the dinner a strong technology focus.

The wider guest list included executives from finance, manufacturing, pharmaceuticals, aerospace and consumer industries. JPMorgan Chase CEO Jamie Dimon, BlackRock CEO Larry Fink, Goldman Sachs CEO David Solomon, Citigroup CEO Jane Fraser, Pfizer CEO Albert Bourla, Boeing CEO Kelly Ortberg and General Motors CEO Mary Barra were among the invited business leaders.

The dinner followed a day of meetings between Trump and Xi as Washington and Beijing sought to manage tensions in their relationship. Trade remains a major issue, with both countries dealing with tariffs, supply-chain concerns and restrictions affecting strategic industries.

Artificial intelligence was another important area in the discussions. The US and China are competing for leadership in advanced AI, while American restrictions on exports of high-end chips and technology to China remain a major point of contention. The presence of executives from Nvidia, AMD, Google, Microsoft, OpenAI and other technology companies underscored the business importance of those discussions.

The guest list also highlighted the growing role of private technology companies in US economic and strategic policy. AI companies and semiconductor firms have become increasingly important to questions involving national security, computing infrastructure and technology exports.

Chinese business leaders, however, were largely absent from the dinner. Xi’s delegation instead included senior government and economic officials, including Vice Premier He Lifeng, Commerce Minister Wang Wentao and other officials involved in trade and economic policy.

The difference in representation was notable. While more than 30 American business leaders attended, China’s delegation was dominated by government officials rather than corporate executives. Analysts cited by CNA said the absence of Chinese CEOs highlighted the different roles played by business and government in the two countries’ economic systems.

Trump’s dinner also carried considerable diplomatic symbolism. Xi’s visit was his first trip to Washington in more than a decade and marked the second meeting between the two leaders this year. Their discussions come as both governments attempt to stabilise relations while continuing to disagree over trade, Taiwan, technology and other strategic issues.

During the dinner, Trump described the visit as an honour and spoke about the long history of US-China relations. Xi said the two countries had reached a common understanding on several issues and called for both sides to act as responsible major powers.

The two countries also agreed to extend their existing trade arrangement by two months, while China would continue supplying rare earth materials to the US and current tariff levels would remain in place. The arrangement provides temporary continuity as negotiations continue.

The White House dinner therefore brought together two very different groups: senior Chinese political and economic officials and a large representation of America’s corporate leadership. The contrast reflected the broader nature of the Trump-Xi meeting, where diplomacy, trade policy and technology interests were closely connected.

The presence of Musk, Cook, Altman, Huang, Bezos, Zuckerberg, Nadella and Pichai also put the technology sector at the centre of attention. Their companies are directly affected by US-China trade policy, semiconductor restrictions and the global race to develop artificial intelligence.

While the dinner offered a high-profile display of engagement, several major issues between Washington and Beijing remain unresolved. The state dinner provided a setting for diplomacy and business visibility, but the longer-term direction of US-China trade and technology relations will depend on negotiations beyond the White House event.