Apollo Global Management is nearing a deal to lend approximately $3.4 billion to a special investment vehicle. Organized by Valor Equity Partners, the vehicle will purchase and lease Nvidia chips to Elon Musk’s artificial intelligence company, xAI.
The transaction marks Apollo’s second significant investment in xAI chip leasing following a $3.5 billion loan in November. The new vehicle aims to raise a total of $5.3 billion through a combination of debt and equity.
This financing structure helps xAI manage the immense capital requirements for building massive data centers to train advanced AI models. The deal could be finalized as early as this week as part of xAI’s broader fundraising efforts to compete in the capital-intensive AI sector.