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xAI’s Reported $20 Billion GPU Order Extends Nvidia’s Lead in AI Compute Deals

Investors are weighing equity-linked megadeals alongside mounting AI infrastructure outlays.

Overview

  • Musk’s xAI is reported to be signing a roughly $20 billion Nvidia GPU purchase to equip its Memphis Colossus 2 data center.
  • OpenAI remains a major Nvidia buyer with a partnership reported to exchange up to $100 billion in investment for about 10 gigawatts of systems.
  • OpenAI also agreed to procure roughly 6 gigawatts of AMD hardware in a deal that includes warrants reportedly allowing OpenAI to buy up to about 10% of AMD shares.
  • The rush to lock in multi‑gigawatt capacity has stoked debate over circular vendor financing, even as some analysts argue demand and a multi‑supplier ecosystem reduce concentration risk.
  • TSMC has raised capital spending guidance to $40–$42 billion as forecasts for AI data‑center investment stretch toward the multi‑trillion‑dollar range by 2030.