With a $2 billion investment in xAI, Nvidia could unlock up to $1.2 trillion in potential hardware sales. This deal promises to rewrite the future of artificial intelligence.
Nvidia is betting $2 billion on this company and promising to rewrite the rules of artificial intelligence. Jensen Huang, CEO of the world’s most valuable company, has long made no secret of his admiration for Elon Musk. "My only regret about xAI is not giving it more money," he recently declared. Now that phrase is taking shape in a deal of symbolic and strategic significance, with a major $20 billion funding round for xAI, $2 billion of which comes from Nvidia.
This isn’t just any investment. It’s a move designed to secure the future of artificial intelligence and keep Nvidia at the center of the technological revolution it helped spark.
xAI wants to build its "Colossus 2," a massive data center infrastructure designed to support new generative models. And Nvidia, with this investment, is ensuring that every watt of computing power and every line of code runs on its chips.
The alliance that could change the balance of AI
According to information reported by Bloomberg, xAI’s fundraising plan is divided into $7.5 billion of equity financing and $12.5 billion of debt financing. Nvidia’s share is included in the equity portion. On the debt side, however, major lenders such as Apollo Global Management and Diameter Capital Partners are involved, confirming the extent to which the deal is drawing the attention of global investors.
But the most interesting detail lies in the structure of the agreement. xAI will lease Nvidia GPUs under a five-year agreement, rather than purchasing them. This reduces upfront costs while simultaneously ensuring Nvidia a recurring revenue stream. In essence, Nvidia is financing its customer while simultaneously guaranteeing itself recurring revenue and stable demand for its hardware—a double win that no competitor can afford today.
It’s a subtle and powerful strategy, transforming a partnership into a de facto technological monopoly, where every watt of AI power translates into millions of Nvidia GPUs sold.
Nvidia no longer sells chips. It sells the future of AI
In recent months, Nvidia has signed billion-dollar deals with OpenAI, Meta, and Oracle, bringing the capacity of its data centers to unprecedented levels. Each gigawatt of data center capacity could support roughly 4–5 million Nvidia GPUs, according to Huang’s own estimates.
Nvidia has a lot to gain from this deal. According to several market sources, the new xAI infrastructure, Colossus 2, could exceed 10 gigawatts of total capacity, the energy equivalent of a small city. Translated, this means up to 50 million GPUs in operation in the coming years. And assuming an average chip price of $25,000 to $30,000, the potential value of the deal for Nvidia could range between $1.2 trillion and $1.5 trillion over roughly a five-year period.
Staggering figures, certainly, but consistent with the scope of the AI revolution.
Contextualizing this news in the current economic climate (marked by rate cuts and liquidity flowing back into the markets), it’s clear that big tech companies are seizing the moment to consolidate their dominance. After years of monetary tightening, the cost of capital is falling again, and AI is becoming a leading investment opportunity.
In this scenario, Nvidia and Musk perfectly embody the new frontier of market dominance. And whoever controls computing power, controls innovation.
Original article published on Money.it Italy 2025-10-09 13:35:00. Original title: Nvidia punta $2 miliardi su questa società. Ecco cosa ci guadagna
