Overview

• Nvidia’s Jensen Huang confirmed an equity investment of about $2 billion in Elon Musk’s xAI as part of a roughly $20 billion round structured with about $7.5 billion in equity and up to $12.5 billion in SPV debt tied to Nvidia GPU leases for the Colossus 2 build in Memphis.
• Debt backers for the xAI SPV include Apollo Global Management and Diameter Capital, with Valor Capital leading equity, in a model that secures hardware as collateral and spreads payments over five years.
• Huang said Nvidia has formed its first direct purchasing relationship with OpenAI and estimated AI data centers cost $50 billion to $60 billion per gigawatt, adding that OpenAI does not yet have the cash to pay for all planned equipment.
• Reports indicate OpenAI has arranged roughly $1 trillion of infrastructure commitments targeting more than 20 GW, including at least 10 GW with Nvidia systems and a 6 GW AMD deal that grants OpenAI warrants for up to about 10% of AMD’s shares.
• Sam Altman signaled more large agreements are coming as critics question circular financing between vendors and customers, while industry voices highlight power access as a bottleneck and Huang urges off‑grid generation to support future sites.