xAI Nears $20 Billion Funding Round Including Nvidia Investment
The deal uses a special purpose vehicle to purchase Nvidia GPUs for xAI's "Colossus 2" data center in Memphis, Tennessee.
A Complex Financing Structure
Elon Musk's artificial intelligence startup, xAI, is reportedly raising up to $20 billion in a complex financing round that includes a $2 billion equity investment from chipmaker Nvidia. According to people with knowledge of the matter on Oct. 8, 2025, the deal is structured around a special purpose vehicle (SPV) that will purchase Nvidia processors and lease them to xAI. The financing is expected to be split between approximately $7.5 billion in equity and up to $12.5 billion in debt.
This transaction is not a conventional venture capital round. The use of an asset-backed SPV, …
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