Elon Musk’s Space Exploration Technologies Corp. (NASDAQ:SPCX) has ramped up its artificial intelligence infrastructure with $40 billion in graphics processing units, or GPUs, financing. Dan Ives warns that technology companies are heading into an intense battle to secure computing capacity.
Dan Ives Predicts Up to 1,000 New US Data Centers
On Sunday, Ives, a partner and senior managing director at Yorkville Ives, said on X that the U.S. could see another 800 to 1,000 data centers built over the next several years.
“This will be a Game of Thrones battle in the tech world to secure compute power,” Ives wrote.
He added that SpaceX is aggressively expanding its hyperscaler infrastructure to compete with neocloud providers and established cloud companies.
Tech Mogul Secures $40 Billion In SpaceX GPU Financing
Ives’ comments followed Musk’s announcement that SpaceX had closed $40 billion in debt financing to purchase GPUs which are essential for training and running advanced AI systems.
In a post on X on Sunday, Musk said SpaceX was investment grade and generated revenue from its Starlink satellite internet and rocket launch businesses.
In a subsequent post, Musk said the financing primarily consisted of callable debt for GPUs, with the funds expected to arrive in the first and second quarters of 2027.
Musk Warns of Neocloud Industry Shakeout
SpaceX has expanded aggressively into AI this year, describing the business as “Super Intelligence,” or SI.
The segment became the company’s largest business unit, with third-quarter revenue rising ninefold to $7.56 billion from $813 million a year earlier.
Musk has also warned that debt markets are becoming increasingly difficult for companies without significant revenue beyond AI data centers to access.
He predicted that more than 200 neocloud companies — providers specializing in AI-focused cloud computing infrastructure — could face widespread failures and consolidation, leaving only a small number of survivors.
SpaceX reported third-quarter revenue of $14.58 billion, beating estimates of $12.74 billion, while earnings of 35 cents per share topped expectations of 12 cents.
Price Action: SpaceX closed Friday at $147.49, up 1.89%, according to Benzinga Pro.
According to Benzinga Edge Stock Rankings, SpaceX shows positive medium- and long-term price trends but a negative short-term trend.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: favoritesphoto on Shutterstock.com
Recent Comments