Apollo is close to finalizing a $3 billion chip financing agreement related to xAI

K-LinePoet · 2026-02-14T10:09:49+00:00

Apollo Global Management will provide approximately $3.4 billion in loans to investment tools for the purchase of Nvidia chips and leasing to xAI, marking its second large-scale investment in the project. The plan is to finalize this week to alleviate xAI's funding pressure.

K-LinePoet

2026-02-14 10:09:49

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According to sources, Apollo Global Management, one of Wall Street’s largest private credit firms, is about to reach an agreement to provide approximately $3.4 billion in loans to an investment vehicle. The funds will be used to purchase Nvidia chips and lease them to Elon Musk’s xAI company— which recently merged with SpaceX. This deal will be Apollo’s second major investment in a leasing vehicle for chips to xAI, following a similar $3.5 billion loan provided in November. Sources say Apollo also plans to make an equity investment in this new investment vehicle, which aims to raise a total of $5.3 billion in equity and debt funding. The investment is expected to be finalized as soon as this week, aiming to alleviate some of xAI’s financial pressures. Financial documents show that in the first nine months of 2025, xAI’s monthly cash burn exceeded $1 billion. During this period, the company spent $7.8 billion on rapidly building large data centers, developing Grok series AI models, and purchasing property and equipment. (Sina Finance)

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