Apollo, xAI Close in on $3.4B Deal to Power the Next AI Compute Wave

February 09, 2026

In partnership with

AI in HR? It’s happening now.

Deel's free 2026 trends report cuts through all the hype and lays out what HR teams can really expect in 2026. You’ll learn about the shifts happening now, the skill gaps you can't ignore, and resilience strategies that aren't just buzzwords. Plus you’ll get a practical toolkit that helps you implement it all without another costly and time-consuming transformation project.

In a sign of how aggressively capital is flowing into AI infrastructure, Apollo Global Management is reportedly nearing a $3.4 billion loan deal to finance advanced AI chips for xAI, according to The Information.

🔹 What’s the deal?

  • Apollo is set to lend ~$3.4B to an investment vehicle that will purchase Nvidia AI chips and lease them to xAI.

  • The deal is being arranged by Valor Equity Partners, a long-time backer of Elon Musk–led companies.

  • The transaction could be finalized as soon as this week.

🔹 Why it matters

Leasing chips instead of buying them outright allows AI startups to:

  • Scale compute faster

  • Preserve capital

  • Avoid locking billions into rapidly depreciating hardware

This model is quickly becoming a preferred way to build massive AI clusters.

🚀 SpaceX, xAI & orbital data centers

The report comes shortly after Elon Musk revealed that SpaceX acquired xAI in a deal valuing:

  • SpaceX at $1 trillion

  • xAI at $250 billion

Musk has said the strategic logic includes accelerating orbital data centers—space-based infrastructure that could one day support next-generation AI computing beyond Earth.

🔁 Not Apollo’s first xAI bet

This would be Apollo’s second major financing tied to xAI:

  • In November, Apollo backed a $3.5B loan for a chip-leasing vehicle supporting xAI.

  • Over the weekend, Apollo disclosed it led $3.5B in financing for a $5.4B AI data-center compute deal, again arranged by Valor.

  • The structure: a triple-net lease, supporting one of the world’s largest AI training clusters.

Notably, Nvidia is an anchor investor in the vehicle—highlighting how central its hardware is to the AI arms race.

🌍 The bigger picture

  • Big tech is expected to spend $600+ billion this year on AI chips and data centers.

  • Financial giants like Apollo are stepping in to financialize compute—turning GPUs into leased infrastructure, much like aircraft or energy assets.

📌 Bottom line

AI is no longer just a software race—it’s a capital-intensive infrastructure war.
With Apollo financing, Nvidia supplying, and Musk pushing toward space-based compute, xAI is positioning itself at the extreme edge of how—and where—AI will be trained in the future.

Reported by Reuters