https://www.cnbc.com/2025/09/19/musks-xai-10-billion-at-200-billion-valuation.html
In March, Musk announced that xAI had merged with X, his social network, in an all-stock transaction that valued the AI company at $80 billion and the social media company at $33 billion. Musk acquired Twitter for about $44 billion in 2022 and later changed the name to X.
https://www.tomshardware.com/pc-components/gpus/nvidia-backs-20-billion-xai-chip-deal
Elon Musk’s AI venture, xAI, is preparing to raise roughly $20 billion through a combination of equity and debt, with Nvidia playing a central role in the funding structure and chip supply. According to Bloomberg, the funds are being split between $7-$8 billion in new equity and as much as $12 billion in debt, routed through a special-purpose vehicle that will purchase Nvidia GPUs and lease them out to xAI. Nvidia itself is believed to be investing up to $2 billion into the equity portion, according to Bloomberg sources.
The arrangement effectively finances purchases of Nvidia’s own hardware, while ensuring that xAI secures priority access to GPUs during a period of tightening supply. It also gives Nvidia a foothold in one of the most aggressive AI training deployments in the United States. The chips are earmarked for Colossus 2, xAI’s 100 MW Memphis site, which came online earlier this year. Musk has plans to double the site’s GPU count to 200,000.
In September, Musk publicly denied rumors that claimed xAI was raising $10 billion at a $200 billion valuation, taking to X to say, “Fake news. xAI is not raising any capital right now.” The deal now described by Bloomberg is larger, more complex, and more tightly bound to Nvidia. Reuters confirmed that the chips would be used at xAI’s Memphis site, while others believe this to be a continuation of the AI industry's circular financing.
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