PwC Forces SpaceX to Book $9 Billion Debt From xAI-Valor Deals
Updated
Updated · Fortune · May 25
PwC Forces SpaceX to Book $9 Billion Debt From xAI-Valor Deals
1 articles · Updated · Fortune · May 25
$9 billion in related-party debt was added to SpaceX’s balance sheet after PwC rejected xAI-Valor transactions as leases and treated them as loans in substance.
Three agreements signed from October to April obligated an xAI subsidiary to pay Valor nearly $20 billion for GPU infrastructure, with SpaceX guaranteeing the payments if the unit cannot cover them.
PwC classified the structure as a failed sale-leaseback, concluding xAI retained effective control of the GPUs and that the financing could not stay off balance sheet.
Valor entities have already collected about $885 million in 2025 and another $857 million in the first two months of 2026; Antonio Gracias’ firm also holds roughly 7.3% of SpaceX.
Governance experts said the disclosures raise arm’s-length and recusal questions ahead of SpaceX’s planned IPO, which could funnel the company into major Nasdaq-tracking funds within weeks.
Is SpaceX's $20B deal a bailout for Musk's AI venture or a payout to his friend before the IPO?
Did Nasdaq change its listing rules for SpaceX, forcing index funds to buy a high-risk stock?
SpaceX’s $9 Billion Debt Reclassification: IPO Under the Microscope Amid Governance and Intercompany Dealings
Overview
SpaceX is moving toward a highly anticipated IPO, aiming for a massive $1.75 trillion valuation. This event is set to reshape the company’s financial landscape and could deliver substantial returns for key investors, especially Valor Equity Partners, which holds a significant stake. If market demand pushes the valuation even higher, the financial impact for stakeholders will be even greater. The IPO marks a pivotal moment, offering investors a rare opportunity to realize large gains and signaling a major shift in SpaceX’s position within the industry.