Apollo Global Management is attempting to open secondary trading on a $3.5bn private credit deal backing Elon Musk’s artificial intelligence company xAI, according to sources cited by Bloomberg.

The debt was arranged to finance xAI’s access to Nvidia graphics processing units and related data-centre infrastructure. Apollo has told other lenders it is willing to purchase additional portions of the loan at par, according to people familiar with the matter.

The financing was issued through a special purpose vehicle set up by Valor Equity Partners, one of xAI’s key backers, to acquire and lease advanced chips to the company. Nvidia participated in the vehicle, and Apollo led the debt portion.

Apollo has increasingly sought to act as a market maker in private credit, focusing on investment-grade deals that could significantly expand the addressable market. The firm traded more than $6.7bn of private credit last year, one person said.

xAI has continued to raise large sums to fund its capital-intensive expansion. The company recently announced a further $20bn equity raise and is expected to rely on additional structured financing as it scales data-centre capacity.

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