Apollo Global Management is finalizing a $3.4 billion loan to finance Nvidia chips for Elon Musk's xAI, according to reports from The Information and Reuters.
The private credit firm's second major investment in xAI could close this week.
The loan will fund an investment vehicle that purchases Nvidia processors and leases them to xAI, allowing Musk's artificial intelligence startup to access high-performance computing without upfront hardware costs. Valor Equity Partners, a longtime backer of Musk's companies, is arranging the transaction.
This marks Apollo's second chip-leasing deal with xAI in three months. The firm provided a similar $3.5 billion loan in November to support what Apollo described as "one of the world's most powerful compute clusters" for AI model training. Both transactions use triple-net lease structures that shift hardware ownership to financial backers.
The financing arrives days after Musk disclosed SpaceX's acquisition of xAI. That transaction valued the rocket and satellite company at $1 trillion and the AI startup at $250 billion, creating deeper integration between space infrastructure and AI development.
Big technology companies are projected to spend more than $600 billion this year on advanced chips and data centers needed to train AI systems.
Apollo has deployed over $40 billion into next-generation infrastructure since 2022, including compute capacity and digital platforms, as the firm estimates global data center infrastructure will require several trillion dollars of investment over the next decade.
SpaceX, Apollo, Nvidia, and xAI did not immediately respond to requests for comment on the reported $3.4 billion loan. The Information cited a person familiar with the matter who said terms are at an advanced stage and could be finalized this week, following Apollo's previous $3.5 billion loan to xAI in November 2025.
