Ankara:SpaceX is planning to raise $40 billion in a financing effort led by Apollo Global Management. The funds are intended for the purchase of Nvidia chips.

According to Anadolu Agency, The Financial Times reported that the financing plan includes raising about $10 billion in bank loans and $30 billion through investment-grade debt. Apollo Global Management is expected to lead the deal, with bond group Pimco participating in discussions among a select group of lenders. The companies aim to finalize the transaction by 2027.

This financing underscores the significant amounts tech companies are raising to support data centers, chips, and other infrastructure necessary for artificial intelligence. SpaceX's BBB credit rating allows insurance and pension funds to purchase its debt, as it is the second-lowest investment-grade ranking.

While Apollo and Pimco declined to comment, SpaceX and Nvidia have yet to respond to media inquiries. The deal is expected to strengthen the relationship between SpaceX and Nvidia, following SpaceX CEO Elon Musk's commitment to utilizing Nvidia's technology for AI initiatives. Musk indicated that SpaceX has chosen to exclusively use Nvidia's Vera Rubin architecture, which he describes as the best available.