AI boom fuels private credit growth, says Apollo’s John Zito

Private credit’s adaptability makes it uniquely positioned to capitalize on the rapid evolution of AI technologies. As artificial intelligence development outpaces traditional financing timelines, private credit offers the flexibility and speed needed to fund everything from data centers to power infrastructure. This emerging synergy between flexible capital and AI innovation highlights a significant opportunity for investors who can navigate both technological and financial complexities.

The big picture: Artificial intelligence’s unpredictable advancement trajectory creates opportunities for private credit lenders who can provide flexible funding options tailored to the industry’s unique needs.

• “Being able to underwrite a 15- to 20-year loan, with flexible terms, with a hyperscaler Bloomberg Terminal, grid provider or power company — that doesn’t get talked about enough in private credit,” explained John Zito, an executive at Apollo Global Management Inc.
• Zito shared these insights during a panel discussion at Moody’s Credit Frontiers 2025 conference in New York City on Tuesday.

Why this matters: Private credit’s ability to adapt financing terms for AI infrastructure creates a competitive advantage over traditional lending models that often require more predictable growth trajectories.

• The pace of AI development makes forecasting even near-term technological changes challenging, creating financing requirements that demand greater flexibility than conventional lending structures.
• Infrastructure supporting AI advancement—including data centers, computing hardware, and power systems—requires specialized financing solutions that can accommodate rapid technological evolution.

Implications: Private credit firms that develop expertise in evaluating AI-related investments could establish dominant positions in funding the next generation of computing infrastructure.

• Companies like Apollo appear to be positioning themselves at the intersection of private credit and technology financing, potentially creating new specialized lending categories.
• The comments suggest private credit markets are actively exploring how to capitalize on AI’s growth while traditional lenders may be more hesitant due to the sector’s unpredictability.