Apollo Backs $5.4 Billion Valor and xAI Data Center Compute Infrastructure Transaction with $3.5 Billion Capital Solution

Rhea-AI Summary

Apollo (NYSE: APO) led a $3.5 billion capital solution from Apollo-managed funds to back Valor Compute Infrastructure L.P. (VCI) in support of a $5.4 billion acquisition and lease of data center compute infrastructure, including NVIDIA GB200 GPUs, to a subsidiary of xAI Corp on Jan 7, 2026.

The financing uses a triple-net lease and aims to support a large compute cluster for ongoing Grok model training; NVIDIA participated as an anchor limited partner in VCI. Valor said the fund will offer quarterly cash distributions and upside through ownership of assets. Apollo noted it has deployed over $40 billion into next-generation infrastructure since 2022.

Positive

• $3.5B capital solution led by Apollo
• Financing supports a $5.4B compute infrastructure acquisition
• Structure: triple-net lease backing GPU assets
• VCI offers quarterly cash distributions and asset ownership upside
• Apollo deployed over $40B into next-generation infrastructure since 2022

Negative

• None.

Key Figures

Capital solution size $3.5 billion Apollo-led capital solution for Valor Compute Infrastructure

Transaction size $5.4 billion Acquisition and lease of data center compute infrastructure for xAI

Deployment since 2022 $40 billion Apollo-managed funds in next-generation infrastructure since 2022

Inception year 2023 xAI inception year cited in article

Grok version 4 Grok 4 referenced as demonstrating strong benchmark performance

Market Reality Check

$145.82 Last Close

Volume Volume 2,083,892 is 0.75x the 20-day average of 2,775,306 shares. normal

Technical Price at 152.70 is trading above the 200-day MA of 136.16 and 12.7% below the 52-week high.

Peers on Argus

Key asset management peers like ARES, KKR, BAM, BN and AMP show modest gains (e.g., ARES up 3.01%, KKR up 1.02%), but sector momentum scanners did not flag a coordinated move, pointing to a more stock-specific reaction for APO.

Common Catalyst Both APO and KKR had same-day headlines related to large data center infrastructure investments, highlighting interest in AI and digital infrastructure within the alternatives sector.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Jan 05	Capital investment	Positive	+2.1%	Apollo-led <b>$1.2B</b> QXO convertible preferred to fund future acquisitions.
Dec 16	Acquisition deal	Positive	+0.2%	Apollo Funds agree to acquire majority stake in French retailer Prosol Group.
Dec 08	Sports investment	Positive	-0.5%	Minority investment in Wrexham AFC and stadium redevelopment financing.
Dec 02	Conference appearance	Neutral	+0.5%	Announcement of CEO fireside chat at Goldman Sachs financial services conference.
Nov 24	Partnership launch	Positive	+0.1%	Collaboration to offer access to Bridge Investment Group vehicles via Axxes platform.

Pattern Detected

Recent APO deal and partnership announcements have generally produced modest single-digit percentage moves, with mostly positive price reactions and one small divergence.

Recent Company History

Over the past few months, Apollo has announced several capital deployment and strategic activity updates. On Nov 24, 2025, a collaboration involving Axxes Capital focused on real estate and net lease strategies. Subsequent news included a conference appearance on Dec 10, 2025, a minority investment in Wrexham AFC, the Prosol Group acquisition in France, and a $1.2 billion convertible preferred investment in QXO. These events show consistent use of Apollo-managed funds across diverse sectors, and today’s $3.5 billion AI infrastructure financing fits that capital deployment pattern.

Market Pulse Summary

The stock moved -5.5% in the session following this news. A negative reaction despite the sizable AI infrastructure financing would contrast with Apollo’s history of generally constructive responses to deployment news. The deal adds a $3.5 billion capital solution to a $5.4 billion compute infrastructure transaction and builds on over $40 billion deployed into next-generation assets since 2022. Any weakness could reflect concerns about risk concentration, transaction complexity, or changing sentiment toward AI-related infrastructure rather than a clear break from Apollo’s established capital deployment strategy.

Key Terms

gpu technical

"GPU Lease Financing to Support xAI’s Second Data CenterNEW YORK"

A GPU (graphics processing unit) is a specialized computer chip designed to handle many calculations at once, originally for rendering images and video but now widely used for tasks like artificial intelligence, data analysis and high-performance computing. Investors watch GPU demand and prices because strong sales often signal growth for chip makers and their customers, affect profit margins and capital spending, and can forecast wider trends in gaming, AI adoption and cloud services.

triple net lease financial

"The financing uses a triple net lease structure and will support one of the"

A triple net lease is a rental agreement where the tenant pays the base rent plus three main ongoing costs: property taxes, building insurance, and routine maintenance. For investors, this shifts much of the expense and risk onto the tenant, creating a steadier, more predictable income stream for the property owner—similar to renting a furnished home where the renter also pays the bills—making valuation and cash-flow forecasting simpler.

limited partner financial

"NVIDIA invested in VCI as an anchor Limited Partner alongside many of Valor’s"

A limited partner is an investor in a pooled investment vehicle—such as a private equity, venture capital, or real estate fund—who provides capital but does not take part in day‑to‑day management and whose financial responsibility is capped at the amount invested. For investors, being a limited partner matters because it defines how much control they have, how much risk they bear, and how returns are distributed; think of a limited partner as a silent co‑owner who shares in profits and losses while leaving operations to the fund managers.

AI-generated analysis. Not financial advice.

GPU Lease Financing to Support xAI’s Second Data Center

NEW YORK, Jan. 07, 2026 (GLOBE NEWSWIRE) -- Apollo (NYSE: APO) today announced that Apollo-managed funds and affiliates (the “Apollo Funds”) have led a $3.5 billion capital solution for Valor Compute Infrastructure L.P. (“VCI”), a fund managed by Valor Equity Partners (“Valor”), to support its $5.4 billion acquisition and lease of data center compute infrastructure, including NVIDIA GB200 GPUs, to a subsidiary of xAI Corp (“xAI”). The financing uses a triple net lease structure and will support one of the world’s most powerful compute clusters for ongoing model training and development of Grok.

NVIDIA invested in VCI as an anchor Limited Partner alongside many of Valor’s institutional investors. Since inception in 2023, xAI has rapidly established its position as one of the leading companies in artificial intelligence, with Grok 4 demonstrating strong performance across benchmarks.

“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. “We are supporting the growth of this transformative technology by investing in the critical infrastructure that enables it, alongside highly regarded partners like Valor and NVIDIA, who are driving the next wave of innovation.”

“VCI is an extension of our continued service as a firm to xAI. The fund provides investors with the opportunity to invest in critical artificial intelligence compute infrastructure with quarterly cash distributions and upside through ownership of the compute assets,” said Valor Founder, CEO and CIO Antonio Gracias.

Apollo estimates that global data center infrastructure will require several trillion dollars of investment over the next decade, driven by secular trends associated with the Global Industrial Renaissance and accelerating demand for compute capacity and AI workloads. Since 2022, Apollo-managed funds and affiliates have deployed over $40 billionⁱ into next-generation infrastructure, including compute capacity, digital platforms and renewable energy.

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.

About Apollo

Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade credit to private equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of September 30, 2025, Apollo had approximately $908 billion of assets under management. To learn more, please visit www.apollo.com.

About Valor Equity Partners

Valor Equity Partners is an operational growth investment firm focused on investing in high-growth companies across various stages of development. For decades, Valor has served its companies with unique expertise to solve the challenges of growth and scale. Valor partners with leading companies and entrepreneurs who are committed to the highest standards of excellence and the courage to transform their industries. As of December 31, 2025, Valor had approximately $55 billion of assets under management. For more information on Valor Equity Partners, please visit www.valorep.com.

Contacts

Noah Gunn

Global Head of Investor Relations

(212) 822-0540

IR@apollo.com

Joanna Rose

Global Head of Corporate Communications

(212) 822-0491

Communications@apollo.com

^{________________________________
i} Includes certain transactions that have signed but not yet closed. There can be no assurance that these transactions will close as expected or at all.

FAQ

What did Apollo announce on Jan 7, 2026 about APO and xAI?

Apollo-led funds provided a $3.5B capital solution to back VCI's $5.4B acquisition and lease of compute infrastructure to an xAI subsidiary.

How does the VCI financing for APO and xAI structure the deal?

The transaction uses a triple-net lease structure to finance NVIDIA GB200 GPUs and data center compute assets.

What investor returns does Valor say VCI will provide for APO investors?

Valor stated the fund will provide quarterly cash distributions and upside through ownership of the compute assets.

Did NVIDIA participate in the APO-backed VCI transaction on Jan 7, 2026?

Yes; NVIDIA invested in VCI as an anchor limited partner alongside Valor’s institutional investors.

How much infrastructure capital has Apollo deployed into next-generation assets since 2022?

Apollo estimates it has deployed over $40 billion into next-generation infrastructure since 2022.