Overview

• People familiar with the deal say xAI is raising up to $20 billion through an SPV that will buy Nvidia processors and rent them to the company for five years for its Colossus 2 site in Memphis.
• The package reportedly includes about $7.5 billion in equity and up to $12.5 billion in debt secured by the GPUs, with Nvidia investing as much as $2 billion in the equity portion.
• Apollo Global Management and Diameter Capital Partners are said to be participating in the debt, with Valor Capital leading the equity, in a structure that reduces corporate balance‑sheet debt exposure.
• The fundraising follows OpenAI’s multiyear deal to use AMD chips with an option to acquire up to a 10% stake, and earlier reports that Nvidia plans to invest up to $100 billion in OpenAI as part of staged supply and data‑center commitments.
• Scrutiny is rising over ‘circular’ financing and sustainability: a Goldman Sachs analyst warned Nvidia’s customer investments may inflate reported growth, even as hardware vendors like Dell raise long‑term outlooks and target $20 billion in AI server shipments in fiscal 2026.