Apollo is nearing completion of a roughly $3.4 billion loan to an investment vehicle. The vehicle plans to buy Nvidia chips and lease them to xAI.
Valor Equity Partners is arranging the financing and could finalize the deal this week. The arrangement would support hardware access for xAI‘s operations.
xAI drew attention after its leader announced an acquisition by SpaceX last week. It cited valuations near $1 trillion for SpaceX and $250 billion for xAI (Ed. note: announced last week).
xAI is recruiting crypto experts to train trading models and analyze blockchain data. Its posting signaled a move to “officially” recruit finance experts.
Apollo shares rose about 1% on Monday but remain down roughly 7% over the past 30 days. The firm reported adjusted Q4 net income per share of $2.47 and assets under management of $938 billion, a 24.9% year-over-year increase.
After the deal’s disclosure, shares of fellow Elon Musk-founded Tesla ticked higher on Monday.
