Apollo Global Management, known for its leveraged buyouts, is making early-stage equity investments in AI startups such as data labeling company Mercor, chip company SiFive, and defense technology firm Hadrian. The aim is to build relationships for future debt or asset-backed financing. Apollo believes that AI hardware-era startups will require funding beyond venture capital earlier than software companies, replicating its model from the $35 billion chip leasing deal completed this year with Blackstone.