Apollo, xAI near $3.4 billion deal to fund AI chips: Report

Apollo Global Management is close to ⁠finalizing a roughly $3.4 billion loan to an investment vehicle that plans to buy ‌Nvidia chips ‌and lease them to Elon Musk's xAI, The ‌Information reported on Monday, citing a person familiar with the matter.

Less than a week ago, Musk announced that ​SpaceX acquired the artificial intelligence ​company he also leads in ‌a ‍deal that values the rocket ‍and satellite company at $1 trillion and ‌the AI outfit at $250 billion.

Big tech companies are expected to spend more than $600 billion this year to buy advanced chips and build out massive data centers needed ‍to deploy and train AI systems.


The investment could be ‍finalized as ⁠soon as ⁠this week and Valor Equity Partners, a longtime investor in Musk's companies, is arranging the deal, the report said.

SpaceX, Apollo and xAI did not immediately respond to Reuters requests for comment.