Apollo has led a $3.5 billion financing initiative for Valor Compute Infrastructure L.P. to support the acquisition of advanced data center compute resources for xAI Corp, enhancing the growth of artificial intelligence technology.

Information on the Target

Valor Compute Infrastructure L.P. (VCI) is a fund managed by Valor Equity Partners, focused on providing essential data center compute infrastructure for advanced artificial intelligence applications. In a significant transaction, the Apollo-managed funds and affiliates have led a financing solution of $3.5 billion to assist VCI in the acquisition and lease of critical compute infrastructure, including high-performance NVIDIA GB200 GPUs, intended for xAI Corp, a rapidly growing leader in the AI sector.

The $5.4 billion investment will enable VCI to develop one of the world’s most formidable compute clusters dedicated to model training and development of xAI's innovative products, particularly the Grok model, which has displayed robust performance across various benchmarks since its introduction in 2023.

Industry Overview in the Target’s Specific Country

The data center industry is experiencing remarkable growth driven by the rising demand for artificial intelligence and cloud computing services. The increasing adoptio