Apollo announced that funds and affiliates managed by the firm have led a $3.5 billion capital solution for Valor Compute Infrastructure, a vehicle managed by Valor Equity Partners, supporting its $5.4 billion acquisition and lease of large-scale data center compute infrastructure to a subsidiary of Elon Musk’s xAI. 

The financing, structured as a triple-net lease, underpins one of the world’s most powerful AI compute clusters, featuring NVIDIA GB200 GPUs and purpose-built to support xAI’s ongoing model training and development of its Grok platform. The structure is designed to provide Apollo with strong downside protection while offering long-duration, asset-backed exposure to AI infrastructure. 

“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 Christopher Lahoud, partner at Apollo. 

The deal follows closely on the heels of xAI’s $20 billion Series E funding round, which closed just one day earlier and drew backing from a broad mix of strategic and institutional investors, including Valor, Nvidia, Fidelity Management & Research Company, Qatar Investment Authority, and Abu Dhabi-based MGX. 

Apollo’s investment reflects its growing emphasis on digital and AI-driven infrastructure. Since 2022, the firm has deployed more than $40 billion into next-generation infrastructure spanning compute capacity, digital platforms, and renewable energy.  

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