Nvidia's $2 Billion Investment in Elon Musk's xAI as Part of $20 Billion Financing Deal

Oct 08, 2025 02:20 pm CST

Elon Musk's xAI is securing a $20 billion financing package with Nvidia investing up to $2 billion in equity. The deal includes a special purpose vehicle to purchase Nvidia processors for xAI's Colossus 2 data center in Memphis, with a unique structure splitting $7.5 billion in equity and $12.5 billion in debt. Despite Musk's earlier denial of fundraising, the capital-intensive AI startup reportedly burns through $1 billion monthly.