Blackstone and Apollo Throw Billions at AI Chips

A Blackstone press release stated:

Broadcom Inc. (NASDAQ: AVGO), a global technology leader that designs, develops, and supplies semiconductor and infrastructure software solutions, today announced the establishment of the AI XPV Platform with Apollo (NYSE: APO) and Blackstone’s (NYSE: BX) Credit & Insurance Business as initial anchor investors. 

The Platform is designed to enable more than 20 gigawatts in compute capacity using Broadcom’s XPUs and networking solutions customized for leading frontier AI labs, including Anthropic and OpenAI, through 2028. 

The Platform launches today with an initial tranche of $35 billion led by Apollo, in partnership with Blackstone, to facilitate Anthropic’s previously announced capacity expansion of more than 1 gigawatt of compute infrastructure expected to deploy in Fluidstack-based sites starting in mid-2026.

Apollo's press release said global banks would play a role as well.

The funding is for expensive chips that go into AI data centers owned by Fluidstack.

Cipher Mining recently signed a ten year AI hosting agreement with Fluidstack and Google.  In the same press release Cipher announced its Colchis site just outside San Angelo city limits in West Texas.  It is not clear if Colchis is part of that AI hosting arrangement with Fluidstack.  That remains to be seen.

Fluidstack "builds gigawatt scale data centers from the ground up, delivered in months..."

If private equity underwriter (PEU) funding is behind the expensive chips that go into Colchis that's another political push for ERCOT to approve Cipher Mining's AI data center in our area.  A tie to Anthropic and its use of Fluidstack would add an established TechGod dimension.

BlackRock's Larry Fink wants your retirement fund to backstop the data centers people do not want in their backyards.  Blackstone Credit & Insurance Business may do just that with your annuity and Apollo's Athene could do likewise.

“We’re in this unique time where we need multiple trillions of dollars, for AI, power, infrastructure, chips and all of that requires very bespoke, long-duration capital that’s not traditional to the CUSIP market.” John Zito, Co-President, Apollo Asset Management

Long duration capital for short lived assets?  That usually means bagholder.

Politicians Red & Blue love PEU and their new TechGod brethren.  Increasingly, more are one.