{"id":458385,"date":"2026-02-09T15:43:10","date_gmt":"2026-02-09T15:43:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/458385\/"},"modified":"2026-02-09T15:43:10","modified_gmt":"2026-02-09T15:43:10","slug":"apollo-xai-near-3-4-billion-deal-to-fund-ai-chips-the-information-reports","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/458385\/","title":{"rendered":"Apollo, xAI near $3.4 billion deal to fund AI chips, The Information reports"},"content":{"rendered":"\n<p class=\"yf-vbsvxt\">Feb 9 (Reuters) &#8211; Apollo Global Management is close to finalizing a roughly $3.4 billion loan to an investment vehicle that plans to \u200bbuy <a href=\"https:\/\/finance.yahoo.com\/quote\/NVDA\/\" data-ylk=\"slk:Nvidia;elm:context_link;itc:0;sec:content-canvas\" class=\"link \" rel=\"nofollow noopener\" target=\"_blank\">Nvidia<\/a> chips and lease them to Elon Musk&#8217;s xAI, The \u200cInformation reported on Monday, citing a person familiar with the matter.<\/p>\n<p class=\"yf-vbsvxt\">Less than a week ago, \u200cMusk announced that SpaceX acquired the <a href=\"https:\/\/tech.yahoo.com\/ai\/\" data-ylk=\"slk:artificial intelligence;elm:context_link;itc:0;sec:content-canvas\" class=\"link \" rel=\"nofollow noopener\" target=\"_blank\">artificial intelligence<\/a> company he also leads in a deal that values the rocket and satellite company at $1 trillion and the AI outfit at $250 billion.<\/p>\n<p class=\"yf-vbsvxt\">Musk has said the rationale behind combining SpaceX and xAI \u2060is partly to advance \u200cthe development of orbital data centers, which could use space-based infrastructure to support next-generation AI computing.<\/p>\n<p class=\"yf-vbsvxt\">Big tech companies are expected \u200dto spend more than $600 billion this year to buy advanced chips and build out massive data centers needed to deploy and train AI systems.<\/p>\n<p class=\"yf-vbsvxt\">The investment could be \u200bfinalized as soon as this week and Valor Equity Partners, a longtime \u200cinvestor in Musk&#8217;s companies, is arranging the deal, the report said.<\/p>\n<p class=\"yf-vbsvxt\">SpaceX, Nvidia and xAI did not immediately respond to Reuters&#8217; requests for comment, while Apollo declined to comment.<\/p>\n<p class=\"yf-vbsvxt\">Leasing chips and compute infrastructure allows AI startups such as xAI to scale rapidly while preserving capital that would otherwise be tied \u2060up in costly hardware purchases.<\/p>\n<p class=\"yf-vbsvxt\">The transaction would mark \u200bApollo&#8217;s second major investment in a vehicle \u200bthat leases chips to xAI, following a similar $3.5 billion loan made in November.<\/p>\n<p class=\"yf-vbsvxt\">Apollo said on Saturday its funds led $3.5 billion in \u200dfinancing for a \u2060roughly $5.4 billion data-center compute deal arranged by Valor Equity Partners to lease high-performance hardware to xAI.<\/p>\n<p class=\"yf-vbsvxt\">The financing, structured as a triple-net lease to \u2060support one of the world&#8217;s largest compute clusters for AI model training, also includes \u200cNvidia as an anchor investor in the vehicle.<\/p>\n<p class=\"yf-vbsvxt\">(Reporting by Akash Sriram \u200cin Bengaluru; Editing by Arun Koyyur)<\/p>\n","protected":false},"excerpt":{"rendered":"Feb 9 (Reuters) &#8211; Apollo Global Management is close to finalizing a roughly $3.4 billion loan to an&hellip;\n","protected":false},"author":2,"featured_media":458386,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,81622,181,507,32847,11,214159,1513,74,4119],"class_list":["post-458385","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-apollo-global-management","tag-artificial-intelligence","tag-artificialintelligence","tag-chips","tag-elon-musk","tag-investment-vehicle","tag-spacex","tag-technology","tag-xai"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/458385","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=458385"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/458385\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/458386"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=458385"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=458385"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=458385"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}