Apollo Nears $3 Billion Chip-Funding Deal Tied to XAI

Apollo Global Management, one of Wall Street’s biggest private credit firms, is nearing a deal to lend about $3.4 billion to an investment vehicle that will purchase Nvidia chips and lease them to Elon Musk’s xAI, which just merged with SpaceX, said a person with knowledge of the deal.

The deal would be Apollo’s second big investment in a vehicle to lease chips to xAI, following a similar $3.5 billion loan it made in November. Apollo is also planning to invest in the equity of the new vehicle, which is aiming to raise $5.3 billion in equity and debt, the person said.