xAI Secures $20 Billion Funding Led by Nvidia for AI Supercomputing
Elon Musk's artificial intelligence startup, xAI, is set to secure a massive $20 billion in funding, with Nvidia investing heavily in the company's equity. This comes as Nvidia's market capitalization soared past $1 trillion in 2023, driven by high demand for AI hardware.
In early October 2025, xAI is poised to raise around $20 billion, with Nvidia contributing up to $2 billion in equity. The total financing is structured as roughly $7.5 billion in equity and up to $12.5 billion in debt. This funding will be used to acquire Nvidia processors for xAI's supercomputing center, Colossus 2.
Back in September 2023, Elon Musk confirmed future capital raising for xAI but dismissed reports of a $10 billion funding round. The latest figure, $20 billion, is significantly higher than earlier speculations. Both Nvidia and xAI declined to comment on the report.
xAI's $20 billion funding round, led by Nvidia's substantial investment, signals a significant boost for the AI sector. The funds will enable xAI to equip its Colossus 2 data center with advanced Nvidia GPUs, potentially accelerating AI innovation.
