Elon Musk issues warning to neoclouds as SpaceX ‘closes’ $40 bn debt deal

The world’s richest tech mogul, Elon Musk, predicted on Sunday (US time) that neocloud companies could face failures, claiming that debt markets “have almost entirely shut off access to money for any company that doesn’t have substantial revenue independent of AI data centres.”

His remarks accompanied the major revelation that SpaceX had “closed” $40 billion in debt financing to purchase graphics processing units. GPUs have become essential to modern artificial intelligence and are designed to boost system performance when processing a large volume of data simultaneously.