Apollo Global Management is close to providing roughly $3.4 billion in financing to an investment vehicle that will purchase Nvidia chips and lease them to Elon Musk’s xAI, according to The Information. The structure would let xAI scale compute capacity without heavy upfront hardware costs, echoing a $3.5 billion Apollo-led financing arranged in November. The deal, assembled by Valor Equity Partners, comes as Big Tech is projected to spend more than $600 billion this year on AI chips and data centers. Musk recently said SpaceX’s acquisition of xAI is partly aimed at developing orbital data centers to support next-generation AI workloads. SpaceX, Nvidia and xAI did not immediately respond to requests for comment; Apollo declined to comment.
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