Nvidia plans to invest 2 billion dollars in Musk's xAI, Huang Renxun: almost wants to participate in all of Elon's projects.

NVIDIA will participate in the latest round of financing for the artificial intelligence startup xAI, led by Elon Musk, with a potential equity investment amounting to up to $2 billion. Jen-Hsun Huang expressed excitement about the financing opportunity for xAI, with the only regret being that he did not invest more funds. (Background: AMD allowed OpenAI to "buy a 10% stake" and its stock price surged by 24%, declaring all-out war against Nvidia Cuda?) (Additional context: Huang Jen-Hsun claims that plumbers are the most sought after in the AI era; do blue-collar workers in Taiwan really earn more?) According to Bloomberg, citing informed sources, global chip giant NVIDIA will participate in the latest round of financing for the artificial intelligence startup xAI, led by Elon Musk, with a potential equity investment amounting to up to $2 billion. Financing details: combining equity and debt to assist xAI in expanding its data center. The report indicated that the total amount of this financing reached $20 billion, combining equity and debt financing, with a scale that has doubled compared to previous rounds. Of this, the equity portion is estimated at around $7.5 billion, while the debt portion reaches $12.5 billion. It is understood that xAI will use this funding to purchase NVIDIA's GPUs for its Colossus 2 large data center located in Memphis, Tennessee, USA. The financing structure will employ a Special Purpose Vehicle (SPV) that will purchase NVIDIA hardware, which xAI will then use under a five-year lease. This arrangement allows institutional investors to recoup funds through chip leasing, with the debt secured against the GPUs rather than xAI's overall assets. Bloomberg further noted that xAI is currently facing high operating cost pressures, with monthly cash burn reaching approximately $1 billion. Jen-Hsun Huang praised xAI's potential, regretting not investing more funds. NVIDIA CEO Jen-Hsun Huang confirmed Bloomberg's report in an interview with CNBC on the evening of October 8, expressing great enthusiasm for the financing opportunity for xAI. He stated: "I am very excited about the financing opportunity for xAI. As an investor, my only regret is not investing more funds. Almost everything related to Musk is something you want to be a part of. He gave us the opportunity to invest in xAI, and I am very happy about that." Huang emphasized that this is not traditional venture capital but a long-term investment in a company with significant future potential. He believes that xAI's development prospects in the field of artificial intelligence are exciting, and NVIDIA hopes to further support the construction of the AI ecosystem through this investment. Huang also pointed out that the current AI industry is vastly different from the situation during the internet bubble in 2000. At that time, the total market capitalization of internet companies was only about $30 to $40 billion, while today's hyperscalers have business scales reaching $2.5 trillion, with capital expenditures of about $500 billion. He stressed that advances in AI technology, such as reasoning capabilities and tool usage, have allowed the new generation of AI models to begin generating profits, demonstrating that their commercial value is being rapidly realized. Related reports: The extinction of searches: how will shopping operate in the AI era? BNB Chain and Solana's official accounts are at odds! He Yi burst out: We're all friends, let's drink some loofah soup. Musk predicts that xAI will launch its first "AI-generated game" by the end of next year; will the game production model be disrupted? "Nvidia plans to invest $2 billion in Musk's xAI; Huang Jen-Hsun: I almost want to participate in all of Elon’s projects" This article was first published in BlockTempo, the most influential blockchain news media.