Elon Musk’s xAI is nearing a roughly $20 billion financing to buy Nvidia chips for its ‘Colossus 2’ data center, Bloomberg reported, per Reuters.
The package blends about $7.5B in equity (including up to ~$2B from Nvidia) and as much as $12.5B in debt via a special-purpose vehicle that will acquire and lease GPUs to xAI.
The financing is structured around securing Nvidia’s AI processors, reflecting the ongoing GPU supply constraints that shape model-training timelines.
The report follows Musk’s September denial that xAI was closing a $10B round at a $200B valuation, while saying the company planned to add capital. xAI was founded in 2023. The startup launched just over two years ago with the stated mission to “understand the true nature of the universe.”
For Nvidia, the arrangement demonstrates its market-leading position in the AI infrastructure market. The chipmaker has faced scrutiny over allocation practices as customers compete aggressively for limited capacity.
