Catenaa, Wednesday, October 08, 2025- Elon Musk’s AI startup, xAI, has raised approximately $20 billion so far, with the latest backing from chipmaker Nvidia.
Bloomberg reported that the financing includes equity and debt in a special purpose vehicle that will buy Nvidia processors and rent them to xAI for use in its Colossus 2 project.
Nvidia is investing as much as $2 billion in the equity portion of the transaction, the report said, a strategy by the chipmaker that helps accelerate its customers’ AI investments.
Nvidia stock was up by 1% on Wednesday. The stock is up by about 39% so far in the year.
XAI’s fundraising effort, previously reported by Bloomberg at half the amount, may continue to grow.
The massive financing is just the latest for the AI industry, which has seen major tech companies invest tens of billions at a frenetic pace to build the infrastructure necessary to develop top AI models.
Earlier this week, OpenAI announced a deal to use Advanced Micro Devices chips over multiple years. Meta Platforms has inked several multibillion-dollar deals in the past few months.
including a $29 billion financing package for data centers. Oracle also raised a $38 billion debt package for its infrastructure.
XAI’s financing would be split between about $7.5 billion of equity and as much as $12.5 billion of debt in the SPV, the report said.
The vehicle will be used to buy Nvidia processors, and Musk’s artificial intelligence startup would then rent the chips out for five years, allowing Wall Street financiers to recoup their investment.
The unique deal structure, backed by the GPUs rather than the company, could provide a playbook for tech firms looking to reduce debt exposure.
