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56m ago

AI Cash Flood Intensifies as xAI Seeks $20 Billion, Dell Lifts Long-Term Targets

Fresh capital tied to Nvidia chips heightens scrutiny of circular financing and sustainability.

AI (Artificial Intelligence) letters and robot hand are placed on computer motherboard in this illustration created on June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
The Stargate AI data center in Abilene, Texas
OpenAI CEO Sam Altman speaking at the company's "Dev Day" on Oct. 6. Among the company's big announcements at the event was that they are integrating apps directly into ChatGPT.
An artificial intelligence data center complex being built for OpenAI is shown in Abilene, Texas, on Monday, Sept. 22, 2025.

Overview

  • xAI is raising about $20 billion through a mix of equity and debt in a special-purpose vehicle to buy Nvidia GPUs for its Colossus 2 data center, with Nvidia investing up to $2 billion in the equity portion, according to reports.
  • Dell boosted its long-term outlook to 7%–9% annual revenue growth and at least 15% EPS growth, citing strong demand for AI servers, while CEO Michael Dell said he sees no signs yet of overbuilding data centers.
  • Crunchbase data showed global venture funding reached $97 billion in Q3, with 46% flowing to AI and the largest rounds going to Anthropic ($13 billion), xAI ($5.3 billion), and Mistral AI ($2 billion).
  • Analysts from Goldman Sachs and others cautioned that supplier equity tied to customer purchases may resemble “circular revenue,” pointing to Nvidia’s multibillion-dollar commitments to OpenAI and other partners.
  • Market swings underscored the stakes as AMD briefly added about $100 billion in value on its OpenAI deal and Oracle jumped roughly $255 billion in a single session on cloud guidance linked to AI contracts.