Key Takeaways
- • Bill Ackman said Elon Musk may need to borrow as much as $1 trillion if SpaceX meets its AI compute objectives, according to comments made at an event in Mexico City.
- • SpaceX announced it is raising $40 billion in debt to fund its compute infrastructure buildup and GPU purchases.
- • SpaceX's AI revenue jumped $7.56 billion in Q3 2026 and accounts for 52% of consolidated revenue, while spending on the buildout has also ballooned.
- • Ackman argued hyperscalers have the creditworthiness to access capital, but warned that pure-play neocloud companies such as CoreWeave are more sensitive to the cost of capital.
- • SPCX shares were up 3.19% to $139.02 in pre-market trading on Monday.
Summary
Pershing Square Capital founder Bill Ackman said that Space Exploration Technologies Corp. (SPCX) CEO Elon Musk's data center and AI compute ambitions could lead the company to take on unprecedented levels of debt. Speaking at an event in Mexico City on Saturday, Ackman was asked whether the spending and borrowing required to build AI infrastructure is sustainable. He answered that it is, "because intelligence is an enormously valuable asset," and that demand for compute will be sustained.
Ackman distinguished between the largest players and smaller operators. He said hyperscalers building out much of this infrastructure "have the financial resources, the creditworthiness in order to access the capital," while pure-play neocloud companies that provide compute infrastructure are "much more at risk" and "much more sensitive to the cost of capital." CoreWeave Inc. (CRWV) was cited as a prominent example of a neocloud. Musk had recently warned that neoclouds may struggle to access debt as infrastructure demand could lead many of them to fail or consolidate.
Ackman pointed to SpaceX's AI compute projections, which Musk shared during the Q3 2026 earnings call. "If he meets his objective, he might have to borrow a trillion dollars of capital," Ackman said. He described companies as "competing at sovereign levels" for debt, with AI buildouts causing firms to rival entire countries for borrowing, producing a "massive" debt supply against finite capital. On interest rates, he said the return on compute "is well beyond the cost of the capital," adding, "If rates were at five or at six, they're still going to spend the money."
The comments coincided with SpaceX's announcement that it is raising $40 billion in debt to fund its compute infrastructure and purchase graphics processing units (GPUs). According to the report, SpaceX's AI revenue rose $7.56 billion in Q3 2026 and represents 52% of the company's consolidated revenue, though spending on the buildout has grown substantially. SPCX shares were up 3.19% to $139.02 in pre-market trading on Monday.
Ackman distinguished between the largest players and smaller operators. He said hyperscalers building out much of this infrastructure "have the financial resources, the creditworthiness in order to access the capital," while pure-play neocloud companies that provide compute infrastructure are "much more at risk" and "much more sensitive to the cost of capital." CoreWeave Inc. (CRWV) was cited as a prominent example of a neocloud. Musk had recently warned that neoclouds may struggle to access debt as infrastructure demand could lead many of them to fail or consolidate.
Ackman pointed to SpaceX's AI compute projections, which Musk shared during the Q3 2026 earnings call. "If he meets his objective, he might have to borrow a trillion dollars of capital," Ackman said. He described companies as "competing at sovereign levels" for debt, with AI buildouts causing firms to rival entire countries for borrowing, producing a "massive" debt supply against finite capital. On interest rates, he said the return on compute "is well beyond the cost of the capital," adding, "If rates were at five or at six, they're still going to spend the money."
The comments coincided with SpaceX's announcement that it is raising $40 billion in debt to fund its compute infrastructure and purchase graphics processing units (GPUs). According to the report, SpaceX's AI revenue rose $7.56 billion in Q3 2026 and represents 52% of the company's consolidated revenue, though spending on the buildout has grown substantially. SPCX shares were up 3.19% to $139.02 in pre-market trading on Monday.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.