Bloomberg Tech Musk’s xAI Expands Fundraise to $20 Billion
6 snips
Oct 8, 2025 Carmen Arroyo, a Bloomberg reporter, shares insights into the financial structure of Elon Musk's AI venture, xAI, which is expanding its fundraising efforts to a staggering $20 billion. She elaborates on the special purpose vehicle (SPV) strategy used to manage investments in GPUs, revealing the intricate interplay of debt and equity. The discussion also touches on Tesla's newly affordable EV models and their potential impact on market dynamics, as well as the UK's commitment to enhancing tech collaboration with the US.
AI Snips
Chapters
Books
Transcript
Episode notes
SPV Financing For GPUs Reshapes AI Deals
- XAI structured a $20 billion SPV that combines debt and equity to buy GPUs and lease them back to XAI.
- NVIDIA joined the equity side, creating circular financing tied to chip supply and investor lease payments.
Investors Paid By Leases, Chips Retain Value
- Investors in the SPV receive lease payments that amortize the debt and retain residual chip value in the SPV after five years.
- NVIDIA investing in the equity is notable because it funds purchases of its own chips, tightening vendor-investor loops.
AI Financing Forms A Circular Ecosystem
- Many AI infrastructure deals form a circular web that funnels value back to a few key players like NVIDIA and OpenAI.
- That concentration raises exposure risks if one link in the chain weakens despite strong balance sheets today.
