Apollo, a private loan manager, emerges as the leader in AI chip-secured loans

Apollo Global Management, a leading private loan manager on Wall Street, is acting as a funding source in the complex debt financing market using artificial intelligence (AI) chips as collateral.

The Financial Times (FT) reported on the 3rd (local time) that Apollo's loans in the third quarter increased by more than 50% compared to the previous quarter, reaching a record high of $114 billion (about 153 trillion won).

The third quarter loans included loans that were part of a larger debt financing package collateralized by AI chips from Antropic and Nvidia.

As a result, Apollo's loans in the past 12 months exceeded $350 billion, an increase of almost one-third compared to the previous 12 months.

The size of these loans is comparable to that of large Wall Street banks such as HSBC and Citigroup.

The FT pointed out that Apollo has emerged as a major lender by pouring customer insurance premiums into the AI ​​chip mortgage loan market as it uses the insurance premium income of its subsidiary, life insurance company Athens, to finance its loans.

On the other hand, some of Apollo's competitors are cautious about entering the AI ​​chip-secured loan market, which is in its early stages, the FT reported.