SpaceX, Elon Musk’s space technology and AI company, is looking to raise $40 billion in order to buy Nvidia chips, the Financial Times has reported.

Citing people familiar with the matter, the paper said that the public company is aiming to raise around $10 billion in bank loans and $30 billion in investment-grade debt to fund the purchase.

The FT added that private capital firm Apollo is expected to lead the financing effort and help to sell the remainder of the debt to a broader range of investors. Fixed income-focused investment manager Pimco is reportedly one of a small set of investors in talks over funding the deal.

In August, Nvidia signed partnerships with a range of financial institutions, including Apollo, to establish pools of capital at “attractive rates” for companies looking to purchase its technology for AI buildout.

SpaceX’s BBB rating means that insurance and pension funds could also buy the company’s debt despite it being just two grades above junk.

The company secured an investment-grade rating shortly after its stock market debut in June, and sold $25 billion of debt across five maturity tranches shortly after. However, many of these bonds were sold off in the following days after investors raised doubts about the company’s debt pile and rising expenditure.

The longest bonds mature in 2056, and are currently trading at around 85 cents on the dollar, the FT reported. This places them closer to the trading patterns of junk bonds than investment-grade ones.

This has not prevented the company from seeking further funding, and fellow AI companies continue to seek tens of billions of dollars to develop their technology.

On Monday, Bloomberg reported that OpenAI is in talks with investment funds from the United Arab Emirates to help anchor a $30 billion funding round just six months after its $122 billion raise.

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