Apollo Backs AI Hardware Startups to Win Future Infrastructure Financing

Apollo Global Management is investing in AI and hardware startups, with plans to provide financial support for their growth, according to a report by The Information. The company has already backed chip startup SiFive and AI-powered factory developer Hadrian, among others. Apollo intends to expand its investments in these areas, focusing on equity and debt- or asset-backed financing to capitalize on the AI boom and the need for funding in chip production, data centers, and other hardware.

The appointment of partner Reed Rayman to head the company's chip-focused efforts is part of a broader strategy to secure more digital infrastructure deals and align them with Apollo's investment teams. Apollo already has a substantial team dedicated to AI-centric deals, with around 60 employees working on digital infrastructure.

Hadrian recently raised $1.37 billion from Apollo to expand its automated factories in the United States. Additionally, Apollo partnered with Nvidia to create independent compute platforms intended to mobilize over $500 billion in third-party capital for AI infrastructure. Apollo President Jim Zelter expressed optimism about the partnership, stating that it lays a solid foundation for the next phase of AI development as part of the larger Global Industrial Renaissance.