Apollo Global Management nears $3.4 billion loan to fund AI chips for Elon Musk's xAI

Apollo, xAI near $3.4 billion deal to fund AI chips: Report

Apollo Global Management is close to a significant deal. A roughly $3.4 billion loan is being finalised. This loan will fund an investment vehicle. The vehicle plans to purchase Nvidia chips. These chips will then be leased to Elon Musk's AI company, xAI. Apollo Global Management is close to ⁠finalizing a roughly $3.4 billion loan to an investment vehicle that plans to buy Nvidia chips and lease them to Elon Musk's xAI, The Information reported on Monday, citing a person familiar with the matter. Less than a week ago, Musk announced that SpaceX acquired the artificial intelligence company he also leads in a deal that values the rocket and satellite company at $1 trillion and the AI outfit at $250 billion. Big tech companies are expected to spend more than $600 billion this year to buy advanced chips and build out massive data centers needed to deploy and train AI systems. The investment could be finalized as ⁠soon as ⁠this week and Valor Equity Partners, a longtime investor in Musk's companies, is arranging the deal, the report said. SpaceX, Apollo and xAI did not immediately respond to Reuters requests for comment.

Apollo Global Management nears $3.4 billion loan deal for Nvidia chips to xAI By Investing.com

Investing.com -- Apollo Global Management is close to finalizing a $3.4 billion loan to an investment vehicle that will purchase Nvidia chips and lease them to Elon Musk's xAI, according to a report from the Information on Monday. The deal would mark Apollo's second major investment in a vehicle leasing chips to xAI, following a similar $3.5 billion loan made in November. One of Wall Street's largest private credit firms, Apollo also plans to invest in the equity of the new vehicle, which aims to raise a total of $5.3 billion in combined equity and debt. This investment could be finalized as early as this week and is structured to alleviate financial pressures on xAI as Musk pursues ambitious plans to build extensive data centers for AI model development. The report comes after xAI recently merged with SpaceX. Valor Equity Partners, which has a history of investing in Musk's companies, is organizing the transaction, according to a person familiar with the matter. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Apollo, xAI near $3.4 billion deal to fund AI chips, the Information reports

Feb 9 (Reuters) - Apollo Global Management is close to finalizing a roughly $3.4 billion loan to an investment vehicle that plans to buy Nvidia chips and lease them to Elon Musk's xAI, The Information reported on Monday, citing a person familiar with the matter. Less than a week ago, Musk announced that SpaceX acquired the artificial intelligence company he also leads in a deal that values the rocket and satellite company at $1 trillion and the AI outfit at $250 billion. Big tech companies are expected to spend more than $600 billion this year to buy advanced chips and build out massive data centers needed to deploy and train AI systems. The investment could be finalized as soon as this week and Valor Equity Partners, a longtime investor in Musk's companies, is arranging the deal, the report said. SpaceX, Apollo and xAI did not immediately respond to Reuters requests for comment. (Reporting by Akash Sriram in Bengaluru; Editing by Arun Koyyur)