SpaceX plans to raise $40 billion, led by asset manager Apollo Global Management, to buy Nvidia artificial intelligence chips, the Financial Times reported on Tuesday, citing people familiar with the matter.

The plan would involve about $10 billion in bank loans and $30 billion in investment-grade debt. Apollo is expected to lead the deal and place the debt with investors, with bond fund Pimco among the lenders in talks. The transaction is expected to close in 2027.

The proposed funding shows the enormous capital needs of the AI boom, as tech companies race to secure advanced chips and computing power. Morgan Stanley estimates AI infrastructure will need $1.5 trillion in external financing by 2028.

SpaceX went public in June in a record $86 billion IPO. Elon Musk said last month that xAI’s Colossus 2 data centre could more than double its Nvidia chip count by December.

SpaceX shares fell 1 percent in extended trading after the report, while Nvidia rose 0.5 percent. Neither company responded to Reuters requests for comment.