SpaceX, Meta Pursue $135 Billion for AI Infrastructure as Musk Warns of Neocloud Funding Crunch

12:50 PM EDT, 10/26/2026 (MT Newswires) -- Space Exploration Technologies (SPCX) and Meta Platforms (META) are pursuing roughly $135 billion in financing for AI infrastructure, as SpaceX CEO Elon Musk warned that debt markets have largely closed to data center operators without substantial revenue from other businesses. Musk, who also heads electric vehicle giant Tesla (TSLA), said in a Sunday post on X that SpaceX has closed $40 billion of callable debt for graphics processing units, or GPUs, that will arrive in the first and second quarters. SpaceX was able to secure the financing because it is investment grade and generates revenue from Starlink and launch services, Musk said. "As of the past few weeks, debt markets have almost entirely shut off access to money for any company that doesn't have substantial revenue independent of AI data centers," Musk said. "That means the 200+ neoclouds are going to see guppy-level death and consolidation. Some will make it through, but not many." Neocloud companies provide specialized GPU infrastructure designed for demanding AI workloads. Meta on Monday announced about $35 billion of underwritten offerings of Class A common stock and depositary shares representing preferred stock. The company also plans to establish a $60 billion at-the-market share sale program following the launch of trading in its non-voting Class C shares. Last week, Meta raised its 2026 capital expenditure outlook to $135 billion to $145 billion from a prior range that began at $130 billion. Major technology companies continue to boost spending on AI infrastructure. Alphabet (GOOG, GOOGL) raised its full-year capital expenditure forecast in July to $195 billion to $205 billion after second-quarter spending more than doubled from a year earlier. Amazon.com (AMZN) also increased its full-year capital expenditure outlook by $20 billion to $220 billion, citing higher memory costs. Microsoft (MSFT) lowered its 2026 capital expenditure guidance to $175 billion from $190 billion because of an accounting shift to operating leases, while maintaining its overall investment plans. The company is scheduled to report fiscal first-quarter results Wednesday. "With investor scrutiny surrounding the magnitude and sustainability of AI infrastructure investment continuing to intensify, especially with some of the jitters around the neocloud sector over the past few weeks, we believe Microsoft's financial positioning represents an important competitive advantage (versus) its AI ecosystem peers," Truist Securities said Monday in a report. Shares of several neocloud operators rose Monday despite concerns about financing conditions. Nebius Group (NBIS) gained 1.4%, IREN (IREN) rose 4.9%, Applied Digital (APLD) added 1.2%, TeraWulf (WULF) surged 7.5% and CoreWeave (CRWV) climbed 4.9%. Morgan Stanley said last week that CoreWeave faces reduced visibility into deploying its contracted capacity and reaching its long-term 8-gigawatt target because of growing financing uncertainty, despite remaining the scale leader among neocloud providers. In September, CoreWeave closed a $4.2 billion convertible senior notes offering due 2033. Separately, Wedbush analyst Matt Bryson said Monday that memory and storage suppliers are gaining pricing leverage as new AI data centers are built and neocloud operators increase equipment purchases. Price: 148.33, Change: +0.84, Percent Change: +0.57