Catenaa, Saturday, February 28, 2026- Apollo Global Management has netted roughly $250 million in paper gains so far from a bet it made in recent months to support xAI.
The gains came as part of an investment Apollo made that will give the artificial-intelligence startup access to Nvidia’s graphics processing units, Bloomberg News reported.
Apollo has invested $7 billion in xAI debt, the report said.
The alternative asset manager bought about $3.5 billion of xAI’s debt in December at 99 cents on the dollar, the report said, quoting sources. The loans offer a coupon of 10%, they added.
The company’s merger with Musk’s SpaceX, announced on February 03, boosted the price of that debt to as much as 106 cents.
Apollo had previously syndicated about half of that to clients at 99 cents while retaining the rest, giving it roughly $120 million of paper profits on that portion of the investment, the report said.
Separately, Apollo booked another $100 million of paper gains after buying an additional $3.5 billion of loans in February that are also now trading higher.
The firm had also offloaded some of that at the 99-cent issue price, drawing demand from insurers and asset managers, the report said.
The trades provide a window into the opaque world of private lending, where prices aren’t typically disclosed.
Apollo, which opened up trading on the xAI debt it bought earlier in the year, has been pushing to syndicate private credit more broadly, building a marketplace and partnering with banks to deliver real-time prices.
The firm traded almost $10 billion of high-grade private loans last year.
All of the Apollo debt for xAI is earmarked for a special purpose vehicle managed by Valor Equity Partners to help Musk’s startup rent chips for its Colossus 2 data-center site in Memphis.
