Nvidia Takes $2 billion Equity Stake in Elon Musk's xAI

According to a Bloomberg report, Nvidia has invested $2 billion for an equity stake in Elon Musk’s xAI. The investment is part of xAI’s scaling up of its capital raise to $20 billion. The figure is substantially more than earlier estimates. xAI aims to use a mix of equity and debt to raise the $20 billion. $7.5 billion will be raised with equity, and the remaining $12.5 billion will be raised with debt. Nvidia’s investment, along with Valor Capital, falls in the equity portion. Apollo Global Management and Diameter Capital Partners will take care of the debt section.

JUST IN: Nvidia $NVDA to take up to $2 billion equity stake in Elon Musk's xAI, Bloomberg reports. pic.twitter.com/FFMMGaaLI6

— Watcher.Guru (@WatcherGuru) October 7, 2025

JUST IN: Nvidia $NVDA to take up to $2 billion equity stake in Elon Musk's xAI, Bloomberg reports. pic.twitter.com/FFMMGaaLI6

Elon Musk’s xAI to Get Its Hands on Nvidia Chips?

Source: MarketBeat.comSource: MarketBeat.comNvidia’s investment aligns with xAI’s plans to acquire the company’s high-performance GPUs, especially for its “Colossus 2” data center in Memphis. Nvidia’s AI-focused chips have played a significant part in the company’s stock price surge. AI is at the centre of global attention right now, and Nvidia seems to be riding the wave. According to reports, xAI will rent the Nvidia chips for five years.

Nvidia’s stock price has seen incredible growth ever since the AI craze took over the world. While NVDA’s price has fallen 0.25% today, it is expected to rebound very soon. Nvidia’s (NVDA) current predicament could be due to macroeconomic uncertainty. Investors are likely moving their funds to safe havens, such as gold. The yellow metal hit a new all-time high today, breaching the $4000 mark for the very first time.

Also Read: Nvidia (NVDA) to Continue Sponsoring H-1B Visas After Fee Hike

Also Read: Nvidia (NVDA) to Continue Sponsoring H-1B Visas After Fee HikeGoldman Sachs recently increased its price target for Nvidia (NVDA) from $200 to $210. Goldman Sachs cites continued AI-powered growth over the coming years as the reason for its bullish outlook on NVDA. According to analyst James Schneider Nvidia’s expanding ecosystem of AI partners continues to drive strong demand for its GPUs.