Apollo Global Management (APO) has started investing in AI and related hardware startups as it seeks to build relationships that could lead to future financing opportunities, The Information reported Wednesday, citing people familiar with the matter.

According to the report, Apollo has invested tens of millions of dollars in Mercor's latest funding round, which is expected to value the data-labeling startup at $20 billion.

Apollo has also invested in chip startup SiFive and defense technology company Hadrian, expecting such startups to need financing beyond venture capital due to higher upfront costs, the report added. The Information said the firm could provide debt or asset-backed financing or arrange structures combining debt and equity.

The investments are being made through several Apollo-managed funds, including its hybrid capital business, rather than through a dedicated venture fund, according to the report.

Apollo Global Management did not immediately reply to MT Newswires' request for comment.

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