SpaceX has secured $40 billion for AI chips: they aren't going into space just yet

SpaceX announced approximately $40 billion in funding for AI chips. The original plan called for a loan for orbital data centers, but according to available information, the reality is less spectacular and more interesting. It involves a long-term hardware lease intended primarily to boost computing power on Earth. Orbital data centers remain an ambition for now.

What Really Happened

In a regulatory filing, SpaceX stated that it has a binding commitment to finance artificial intelligence chips and related server equipment totaling approximately $40 billion. This is not a traditional loan. An investment firm will purchase the chips, and SpaceX will lease them. The filing classifies this as a finance lease—that is, a long-term lease with characteristics of a loan. The principal is to be repaid quarterly over approximately five years.

The first leases are scheduled to begin in the first half of 2027, and the chips are expected to arrive in batches. The deal is expected to close by the end of the year. The fixed interest rate will be determined at the time of valuation, which has not yet taken place.

Orbit, or Earth?

The assignment linked the business to orbital data centers and satellite navigation. I did not find this connection in credible reports. The business partner describes the funding as support for the supply of chips for “ground-based” computing infrastructure. In this report, orbital data centers serve more as a broader context that the company has been presenting for some time. This is not a proven use for these 40 billion.

Why so much money?

According to available data, the company’s capital expenditures jumped to nearly $20 billion from $6.9 billion a year earlier. When the results were announced, the CFO expected that in the fourth quarter alone, they would spend 35 to 40 billion. Through leasing, expensive hardware can be paid for in installments without the company having to rely solely on traditional debt markets.

The company founder’s comment is also interesting. He claims that in recent weeks, the debt markets have virtually closed to companies that do not have significant revenue outside of AI data centers. SpaceX presents itself here as a company with additional sources of revenue, particularly from satellite internet and cargo launches. However, this is a claim made by the company itself, not an independent assessment.

Why Are Orbital Data Centers Even Being Discussed?

The idea is simple. In orbit, solar energy is virtually uninterrupted, and there are no issues with construction, electrical connections, or permits. Calculations could be performed in space, and only the results would be sent back to Earth—for example, via laser links between satellites.

However, the real obstacles are significant:

• Cooling: In a vacuum, there is neither air nor water, so heat can be dissipated almost exclusively through radiation. High-performance chips therefore require large heat sinks.
• Radiation: Cosmic radiation damages electronics and shortens their lifespan.
• Maintenance: A malfunctioning accelerator in orbit cannot be easily replaced.
• Costs: Launching mass into orbit is still expensive, even though costs are decreasing.

A Risk That Is Often Overlooked

AI chips depreciate rapidly, while leases or loans last for years. If the performance of future generations improves before the financing is paid off, the hardware may become obsolete before the end of the repayment period. That’s why it’s important to have a stable income to back up the debt.

What to Take Away From This

The report about 40 billion is true and clearly illustrates just how capital-intensive building AI infrastructure is. However, orbital data centers are still just a vision. Based on the available information, there aren’t enough specific details about the chips for these centers to claim that this money will actually go into space.