From Pymnts · PYMNTS · · 1m 20s
Apollo bets big on AI hardware startups
The investment giant is backing chip makers and factory builders to finance the infrastructure boom.
In brief
The investment giant is backing chip makers and factory builders to finance the infrastructure boom. Apollo Global Management is positioning itself as a major financier of AI infrastructure by investing in and lending to hardware startups. Originally reported by Pymnts.
Apollo targets AI hardware boom
Apollo Global Management is investing in and planning to lend money to startups building AI chips, data centers, and factory equipment. The strategy aims to capture the massive financing demand as AI infrastructure expands.
SiFive and Hadrian lead the way
Apollo has already invested in chip designer SiFive, which raised $400 million in April, and factory automation company Hadrian, which raised $1.37 billion in August. Both deals signal Apollo's commitment to the sector.
New chip leader drives strategy
Apollo named partner Reed Rayman to head chip-focused efforts in August. Rayman is building relationships to help Apollo finance large, complex AI infrastructure projects and oversee semiconductor-backed deals.
Sixty-person team already in place
Apollo already has around 60 employees focused on digital infrastructure deals. Rayman's role is to connect these teams and source more semiconductor-backed financing opportunities across the company.
Nvidia partnership mobilizes capital
Apollo partnered with Nvidia and five other financial institutions to establish independent compute platforms designed to mobilize over $500 billion in third-party capital for AI infrastructure buildout.
“provides a strong foundation to support the next stage of the AI buildout as part of the broader Global Industrial Renaissance.”
The big picture
Apollo Global Management is positioning itself as a major financier of AI infrastructure by investing in and lending to hardware startups.
