❯ Apollo’s two financing arrangements target about $75 billion of AI chips leased to SpaceX and Anthropic

Two arrangements combinedAccording to The Information, as summarized by Dealroom, two Apollo arrangements involve about $75 billion of AI chips. One would buy about $40 billion of Nvidia Vera Rubin chips through a subsidiary and lease them to SpaceX. The other concerns approximately $35 billion of fundraising involving Broadcom and Blackstone to buy Google TPUs for lease to Anthropic.

Lease payments service financingThe transactions use dedicated entities to raise money and own chips, with customer lease payments servicing the debt. Customers obtain equipment access through long-term leases, while the dedicated entities hold the corresponding assets during those leases. The comparison covered more than 100 neocloud chip-financing deals since 2023, with some convertible bonds, credit facilities and other equipment financing excluded.

Asset managers own the equipmentGPU-focused cloud providers commonly combine fundraising, equipment ownership and computing delivery. Apollo’s arrangements bring an asset manager directly into large-scale chip ownership. The resulting exposure depends on customers’ payment capacity, contract duration and equipment residual values. Apollo can also earn fees for arranging transactions and managing funds.

▮ SIGNALApollo can participate in compute expansion through financing and fund management, with tenant credit and chip residual values determining the durability of investor demand.