Elon Musk's xAI Secures $20 Billion Funding Round With Nvidia as Major Investor
Oct 8, 2025
Elon Musk's artificial intelligence startup xAI is raising up to $20 billion in an ongoing funding round, according to multiple reports. This amount is higher than previously planned, and it includes major backing from Nvidia.
Nvidia, the leading maker of AI chips, is investing as much as $2 billion in xAI. Other investors are also participating. Some of the financing is being provided through a structure where a special purpose vehicle will buy Nvidia processors and rent them to xAI for use in its Colossus 2 AI project.
This investment highlights Nvidia's strong involvement in advancing AI technology and its close relationship with Elon Musk’s ventures.
What does xAI do?
xAI is an artificial intelligence company founded by Elon Musk, working on advanced AI projects like Colossus 2.
Why is Nvidia investing in xAI?
Nvidia is a leader in AI hardware and wants to support and benefit from new advances in artificial intelligence by investing in promising startups like xAI.
How will the new funding be used?
Part of the funding will go toward buying Nvidia chips, which will be rented to xAI for their AI development projects.
What is a special purpose vehicle in this context?
A special purpose vehicle is a company set up to handle specific financial transactions—in this case, to buy and rent Nvidia chips to xAI.
Sources
Musk's xAI nears $20 billion capital raise tied to Nvidia chips, Bloomberg News...
Reuters
Reuters
Elon Musk's xAI is raising more financing than initially planned, including an equity investment from Nvidia , to bring its ongoing funding round to $20 billion, Bloomberg News reported on Tuesday, citing people with knowledge of the matter.
Elon Musk's xAI may be the next AI company to do a creative financing deal invol...
Market Watch
Market Watch
xAI reportedly is looking to raise $20 billion — with Nvidia as one of the investors.
Nvidia to Invest in Musk's xAI
Bloomberg Markets and Finance
Bloomberg Markets and Finance
Elon Musk's artificial intelligence startup xAI is raising more financing than initially planned, tapping backers including Nvidia to lift its ongoing funding round to $20 billion, according to people familiar with the matter. Nvidia is investing as much as $2 billion in the equity portion of the tr...
Prediction: This Growth Stock Has Crushed Nvidia Recently and Will Obliterate It...
The Motley Fool
The Motley Fool
With tech giants racing to buy up artificial intelligence (AI) hardware, Nvidia remains the market's headline act. But an under-the-radar winner has quietly posted even stronger stock performance this year.
Nvidia Stock Rises. Chip Maker Is Investing in Elon Musk's xAI, Report Says.
Barrons
Barrons
The leading AI chip maker is on track to snap a three-day losing streak.
Elon Musk's xAI Plans $20 Billion Raise Backed by Nvidia for AI Project: The Pul...
Bloomberg Markets and Finance
Bloomberg Markets and Finance
Elon Musk's artificial intelligence startup xAI is raising more financing than initially planned, tapping backers including Nvidia to lift its ongoing funding round to $20 billion, according to people with knowledge of the matter. The financing includes equity and debt in a special purpose vehicle t...
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Nvidia CEO Jensen Huang: Want to be part of almost everything Elon Musk is invol...
CNBC Television
CNBC Television
Nvidia CEO Jensen Huang joins 'Squawk Box' to discuss details of the company's partnership with OpenAI, his thoughts on OpenAI's deal with AMD, state of the AI tech race, the promise of AI technology, company growth outlook, state of the AI arms race against China, his thoughts on H-1B visa reforms...
Investors including Nvidia back Musk's xAI in $20B funding round: report
New York Post
New York Post
The financing round includes debt and equity in a special purpose vehicle that will buy Nvidia chips and rent them to xAI, according to a report.
Musk's xAI Taps Nvidia and Others to Raise $20 Billion
Bloomberg Markets and Finance
Bloomberg Markets and Finance
Elon Musk's artificial intelligence startup xAI is raising more financing than initially planned, tapping backers including Nvidia Corp. to lift its ongoing funding round to $20 billion, according to people with knowledge of the matter. Nvidia's CEO Jensen In an interview with CNBC Wednesday, Nvidia...
xAI to Raise $20 Billion After Nvidia and Others Boost Round
Bloomberg Markets and Finance
Bloomberg Markets and Finance
Elon Musk's artificial intelligence startup xAI is raising more financing than initially planned, tapping backers including Nvidia to lift its ongoing funding round to $20 billion, according to people with knowledge of the matter. Edward Ludlow reports https://bloom.bg/47guLJK
Nvidia stock jumps on $2B xAI investment, but why analysts are alarmed
Invezz
Invezz
Nvidia stock (NASDAQ: NVDA) soared over 2% on Wednesday after reports that the chipmaker is planning to put up to $2 billion into Elon Musk's AI startup, xAI, as part of a huge $20 billion funding round. The move highlights just how serious the chipmaker is about pushing AI adoption across industrie...
Nvidia's self-funded AI loop
CNBC Television
CNBC Television
CNBC's Kristina Partsinevelos joins 'Money Movers' to discuss how Nvidia has become the AI industry's preferred lender.
Nvidia CEO Invests in xAI and is Surprised by AMD/OpenAI Pact
PYMNTS
PYMNTS
Nvidia CEO Jensen Huang says his company is investing in Elon Musk's xAI. The executive confirmed the chipmaker's participation in xAI's latest funding round in an interview with CNBC Wednesday (Oct. 8).
Musk's xAI Funding Round Gets Boost From Nvidia
Bloomberg Technology
Bloomberg Technology
Elon Musk's artificial intelligence startup xAI is raising more financing than initially planned, with a boost from partners including Nvidia. Bloomberg's Carmen Arroyo joins Caroline Hyde and Ed Ludlow on “Bloomberg Tech.
Prediction: While Nvidia Leads, This Lesser-Known AI Stock Could Catch Up
The Motley Fool
The Motley Fool
Artificial intelligence (AI) has been transforming the business landscape at an unprecedented rate. The market researchers at Dell'Oro Group expect global capital spending on AI data centers to surpass $1 trillion by 2029.
Nvidia-backed Reflection AI raises $2 billion in funding, boosts valuation to $8...
Reuters
Reuters
Reflection AI, a startup backed by Nvidia, said on Thursday it has raised $2 billion in a new funding round that values the company at $8 billion, as investor interest in artificial intelligence remains unabated.
Nvidia: Investing Like A Private Equity Firm
Seeking Alpha
Seeking Alpha
Nvidia has engaged in several high-profile investments and partnerships, including with Intel, OpenAI, Wayve, and Figure, in the past month. It helps to look at these moves in the context of capital allocation decisions available to it. Nvidia's external investments come with a twist in that it is i...
Can Nvidia reach $7 trillion? One of Wall Street's biggest bulls now thinks so.
Market Watch
Market Watch
The AI infrastructure build-out is still in its early stages, Cantor analysts say, as they see hundreds of billions of dollars in demand still ahead and believe Nvidia's opportunity in the market has more to run.
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