Apollo Global Management Inc. is in discussions to spearhead a financing package of approximately $35 billion for Meta Platforms Inc. to support the development of data centers across the U.S., according to sources familiar with the matter.
The alternative asset management firm is considering contributing a significant portion of the funding, said individuals who requested anonymity as the details are not yet public. Additionally, one of the sources noted that KKR & Co. is involved in the investor consortium.
These financing discussions are still in the early stages, and there is no certainty that the companies will finalize an agreement. While alternative asset managers have previously partnered with major tech firms, this potential deal with Meta is particularly notable. For instance, Databricks Inc. previously secured over $5 billion in financing from lenders such as Blackstone Inc., Apollo, and Blue Owl Capital Inc. Similarly, Apollo led an $11 billion investment last year in a joint venture with Intel Corp.
Meta has already outlined plans to invest up to $65 billion in artificial intelligence-related projects this year, including constructing a massive new data center and expanding its AI teams, according to CEO Mark Zuckerberg last month. Given the surging demand for AI infrastructure, industry estimates suggest that hundreds of billions of dollars will be required to build the necessary computing capabilities. Investors and bankers have been eager to participate, especially as the stock market has rewarded companies that play a crucial role in the AI ecosystem over the past year.
In past financing arrangements, Apollo has retained a portion of the funding it provides while distributing the remainder among other investors. The firm has increasingly positioned itself to offer large-scale funding to investment-grade companies as part of its broader push into private credit opportunities.
Meta has stated that its goal is to bring approximately one gigawatt of computing power online in 2025. The company, which owns Facebook, has already committed $10 billion to a data center in Louisiana and has acquired advanced computing chips to enhance its AI-driven products.
Meanwhile, Microsoft Corp., another major player in AI, has projected an investment of $80 billion in data centers this fiscal year. CEO Satya Nadella recently emphasized the company’s need to sustain high spending levels to keep up with rapidly growing AI demands.
Meta has invested heavily in artificial intelligence in recent years, with AI development a core internal priority. Zuckerberg has expressed his ambition for Meta’s AI chatbot, Meta AI, to become the most widely used chatbot globally by the end of the year. The company has integrated the bot into many of its social media platforms.
Additionally, Meta is developing AI-powered smart glasses that have created an open-source large language model, Llama, which it hopes will serve as a foundation for AI applications built by other companies.
These AI-related investments have been substantial. In January, Zuckerberg told investors that Meta’s long-term spending on AI infrastructure alone is expected to reach several hundred billion dollars.
