Overview

• Nvidia CEO Jensen Huang confirmed an investment in Elon Musk’s xAI in a CNBC interview, with Bloomberg reporting the stake is about $2 billion.
• Bloomberg reports xAI is working on roughly $20 billion in equity and debt tied to Nvidia hardware for its Colossus 2 build, using an SPV that buys GPUs and leases them back to xAI for five years.
• The proposed package includes about $7.5 billion in equity and up to $12.5 billion in debt, with Apollo Global Management and Diameter Capital involved on the debt side and Valor leading equity, according to the report.
• xAI previously raised about $10 billion but is burning roughly $1 billion per month, increasing pressure to secure long-term compute financing.
• Huang described Nvidia’s first direct purchasing partnership with OpenAI and cited earlier plans to invest up to $100 billion, as media reports separately flagged OpenAI’s reported $1 trillion multi-vendor compute agreements and Oracle’s thin gross profit renting Nvidia-driven servers.