Elon Musk’s AI venture, xAI, is preparing to raise roughly $20 billion through a combination of equity and debt, with Nvidia playing a central role in the funding structure and chip supply. According to Bloomberg, the funds are being split between $7-$8 billion in new equity and as much as $12 billion in debt, routed through a special-purpose vehicle that will purchase Nvidia GPUs and lease them out to xAI. Nvidia itself is believed to be investing up to $2 billion into the equity portion, according to Bloomberg sources.
The arrangement effectively finances purchases of Nvidia’s own hardware, while ensuring that xAI secures priority access to GPUs during a period of tightening supply. It also gives Nvidia a foothold in one of the most aggressive AI training deployments in the United States. The chips are earmarked for Colossus 2, xAI’s 100 MW Memphis site, which came online earlier this year. Musk has plans to double the site’s GPU count to 200,000.
