Apollo Global Management is close to finalising a roughly $3.4bn loan to an investment vehicle that plans to purchase advanced chips from Nvidia and lease the hardware to xAI, according to a report by The Information.
The financing, which could be completed as soon as this week, is reportedly being arranged by Valor Equity Partners. The structure would allow the vehicle to acquire high-performance computing equipment and provide capacity to xAI under a leasing model.
Leasing chips and compute infrastructure has become an increasingly common approach for AI developers seeking to scale without committing significant upfront capital to hardware. Technology companies are expected to invest more than $600bn this year in advanced semiconductors and data centre buildouts to support the training and deployment of large-scale AI systems.
The transaction would represent Apollo’s second major financing tied to chip-leasing infrastructure for xAI, following a $3.5bn loan made in November.
The latest financing comes as Musk has outlined plans to expand AI computing capacity, including longer-term concepts such as orbital data infrastructure to support processing needs.
