Apollo leads $3.5 billion financing for xAI data center infrastructure

Apollo Global Management (NYSE: APO) announced that Apollo-managed funds led a $3.5 billion capital solution for Valor Compute Infrastructure L.P., a fund managed by Valor Equity Partners, to support a $5.4 billion acquisition and lease of data center compute infrastructure to an xAI subsidiary.

The financing uses a triple net lease structure and includes NVIDIA GB200 GPUs that will support compute clusters for ongoing model training and development of Grok, according to a company statement. NVIDIA invested in VCI as an anchor Limited Partner alongside Valor's institutional investors.

"This transaction represents a hallmark, downside-protected investment for Apollo in the AI infrastructure space and underscores our role as a leading provider of flexible, asset-based capital for next-generation assets," said Apollo Partner Christopher Lahoud.

Antonio Gracias, Valor's Founder, CEO and CIO, said VCI provides investors with quarterly cash distributions and upside through ownership of the compute assets.

Apollo estimates that global data center infrastructure will require several trillion dollars of investment over the next decade. Since 2022, Apollo-managed funds have deployed over $40 billion into next-generation infrastructure, including compute capacity, digital platforms and renewable energy.

As of September 30, 2025, Apollo had approximately $908 billion of assets under management. Valor had approximately $55 billion of assets under management as of December 31, 2025.

Latham & Watkins LLP served as legal counsel to the Apollo Funds, Proskauer Rose LLP served as legal counsel to VCI and Sullivan & Cromwell LLP served as legal counsel to xAI.

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