Apollo and Blackstone Fund $35 Billion AI Computing Expansion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 08 2026
0mins
Source: Bloomberg
Apollo Global Management Inc's stock rose by 3.88% as it reached a 20-day high amid strong market performance, with the Nasdaq-100 up 2.70% and the S&P 500 up 1.55%.
The core catalyst for this movement is the announcement of a joint financing initiative with Blackstone to expand Anthropic's AI computing capacity by $35 billion. This significant investment aims to enhance AI infrastructure, reflecting the growing demand for AI capabilities. The partnership will utilize Broadcom's custom chips and is expected to provide over 20 gigawatts of computing capacity by 2028, further solidifying Apollo's position in the AI sector.
This collaboration not only highlights Apollo's strategic focus on AI but also positions the firm to capitalize on the increasing demand for AI services, potentially leading to substantial growth in its investment portfolio.
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Analyst Views on APO
Wall Street analysts forecast APO stock price to rise
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 138.910
Low
136.00
Averages
164.45
High
182.00
Current: 138.910
Low
136.00
Averages
164.45
High
182.00
About APO
Apollo Global Management, Inc. is a global alternative asset manager and a retirement services provider. It operates through three segments: Asset Management, Retirement Services and Principal Investing. The Asset Management segment focuses on three investing strategies: yield, hybrid, and equity. These strategies reflect the range of investment capabilities across its platform based on relative risk and return. The Retirement Services business is conducted by Athene Holding Ltd (Athene), a financial services company that specializes in issuing, reinsuring, and acquiring retirement savings products designed for the increasing number of individuals and institutions seeking to fund retirement needs. Athene product lines include annuities and funding agreements. The Principal Investing segment includes realized performance fee income, realized investment income from its balance sheet investments, and certain allocable expenses related to corporate functions supporting the entire company.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Global Resource Integration: By collaborating with lenders, Medallia will benefit from their expertise in scaling businesses globally, strategic relationships, and resources, thereby improving operational efficiency and market penetration.
- Innovation Investment Commitment: The recapitalization is expected to advance the company's existing $500 million commitment to innovation over the next few years, further solidifying its leadership in customer and employee experience.
See More
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- Banking Consortium Changes: The delay in finalizing agreements with banks has impacted Del Vecchio's financing strategy, particularly following BNP Paribas' exit from the banking consortium, which complicates collaboration with other banks like UniCredit and Credit Agricole.
- Alternative Financing Pursuit: Del Vecchio is in discussions with U.S. fund Apollo Global Management for alternative financing solutions to address delays in negotiations with his siblings and legal disputes, although a provisional agreement has been reached to settle inheritance issues.
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See More
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- Massive Financing: Apollo Global Management and Blackstone have finalized a $35 billion financing deal to support Anthropic's expansion efforts, marking one of the largest private credit deals in history and reflecting strong market interest in AI infrastructure investments.
- Deepening Tech Collaboration: The deal utilizes a Special Purpose Vehicle (SPV) to purchase Tensor Processing Units (TPUs) from Google, which will be leased to Anthropic, allowing the company to keep hardware off its balance sheet and providing financial flexibility ahead of its upcoming IPO.
- Surging Memory Demand: As AI data centers expand, Micron, one of only three companies capable of producing high-bandwidth memory at scale, stands to benefit from the increasing demand for memory, despite the deal primarily relying on Google's TPUs rather than Nvidia's GPUs.
- Broad Market Outlook: Morgan Stanley predicts that an additional $1.5 trillion in external financing will be required for AI build-out by 2028, with private credit playing a crucial role; this Apollo and Blackstone deal sets a template for future innovative financing structures, highlighting intensifying competition in the semiconductor industry and the ongoing demand for memory.
See More
