SpaceX is in talks to borrow $40bn to buy AI chips from Nvidia, the Financial Times reported on Tuesday. Today, Bloomberg reported that the talks are underway, citing people familiar with the matter.

Both reports rely on unnamed sources, and none of the companies involved has publicly confirmed the plan.

According to the FT, the package would combine about $10bn in bank loans with $30bn in investment-grade debt. That is debt sold to investors who see the borrower as a relatively safe bet.

Apollo Global Management is expected to lead the deal and sell the debt on to a wide range of investors, the newspaper reported. The Pimco bond fund is among the lenders in talks to take part, according to both outlets.

The two reports differ on how close a deal is. According to the FT’s sources, the deal should be completed in 2027.

Bloomberg, however, described the talks as being at an early stage. Its sources said they could still end without a deal, and that the financing would rank among the largest yet tied to the AI build-out.

The chips would feed SpaceX’s AI data centres. In August, Elon Musk said the company would build them using only Nvidia hardware. Last month, he added that its Colossus 2 site could more than double its Nvidia chip count by December.

SpaceX also earns money from that hardware by renting it to other companies. Google, for example, agreed to pay it $920m a month for access to about 110,000 Nvidia GPUs, the chips used to train and run AI models.

Nvidia, meanwhile, has been helping its customers pay for its products. In August, it set up financing platforms with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to raise more than $500bn for AI infrastructure.

Investors reacted quickly to the news, and SpaceX shares fell about 1% in after-hours trading on Tuesday, while Nvidia rose about 0.5%.