Apollo Nears $3.4 Billion Loan Deal: Apollo Global Management is really close, to finishing a loan of 3.4 billion dollars to a company that wants to buy Nvidia chips. This company will then rent these Nvidia chips to Elon Musks intelligence company called xAI. I heard this from someone who knows what is going on.
The money to pay for this deal could be ready soon, as this week. Valor Equity Partners is taking care of the financing. They have invested in many of Elon Musks companies for a time.
The deal with SpaceX happened not long after Elon Musk said that SpaceX is buying xAI. This deal says that the space and satellite company SpaceX is worth $1 trillion and the AI company xAI is worth $250 billion. Elon Musk said that one reason, for this deal is to help SpaceX and xAI work on making special computers in space called orbital data centers. These orbital data centers will need things in space to work with the new and powerful AI computing that SpaceX and xAI are making. SpaceX and xAI are working together to make this happen.
Growing Demand for AI Infrastructure
The move shows that a lot of money is going into intelligence infrastructure. This is because companies are trying to get the computers to help with artificial intelligence. Big technology firms will probably spend, than $600 billion this year on special chips and big data centers to train and use artificial intelligence models. Artificial intelligence is a deal and companies need good computers to make it work. They are spending a lot of money on intelligence infrastructure to make sure they have the best computers.
Many AI startups, like xAI are now leasing chips and computing infrastructure. This is a popular thing to do. It helps them grow fast without spending a lot of money on hardware. They can use this money for things instead of buying expensive computers and equipment. Leasing chips and computing infrastructure is a way for these AI startups to save money and grow quickly.
Apollo is working closely with xAI. This means Apollo and xAI are going to do things together. Apollo and xAI want to make their relationship stronger. The company Apollo is really trying to deepen its ties with xAI. Apollo and xAI are becoming partners.
If this deal is finished it will be Apollos big investment in a company that rents out chips to xAI. Apollo did something, like this before in November when they gave a loan of $3.5 billion for a project.
Apollo said that they were in charge of some money over the weekend. This money was used to help pay for a big deal. The deal was worth about 5.4 billion dollars. It was for a lot of computers that will be used in a special building called a data center. Apollos money, which is about 3.5 billion dollars is a part of this deal. The people who set up the deal are called Valor Equity Partners. The way the money is being used is like a kind of rental agreement. This agreement is called a net lease. The money will be used to buy a lot of computers that will be used for something called AI training. This will be one of the groups of computers in the world that is used for this kind of thing. A company called Nvidia is also putting in some money to help make this happen. They are like an investor, in this project. The data-center compute deal is very important. Apollos funds are a big part of it.
Apollo declined to comment on the latest report, while SpaceX, Nvidia, and xAI did not immediately respond to requests for comment.
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