Apollo Backs AI Startups in Bid to Bankroll Hardware Boom

Valida Pau reports Apollo Global Management (~$1T AUM) has begun equity investing in AI and related hardware startups with the ambition to lend to them later. Previously unreported: Apollo put low tens of millions into Mercor’s latest round, set to value the data-labeling startup at $20B, according to people familiar. Apollo also invested in SiFive’US$2.64B-valuation round (Jan) and Hadrian’US$5.72B-valuation round (Aug). Thesis: AI startups will need financing beyond VC sooner than prior software generations; Apollo can offer debt/asset-backed or hybrid structures via existing funds (including hybrid capital solutions) rather than a separate venture fund. Context: Apollo already co-led US$22.6B financing package with Blackstone to buy Google chips and lease them to Anthropic; partners with 8VC (Joe Lonsdale) on a multi-billion “American industrial renaissance” mandate. Mercor’s round is being finalized with General Catalyst as lead (TI prior). Caveat: figures and round status attributed to people familiar; Mercor round not closed in the piece.