NVIDIA Corporation (NASDAQ:NVDA) is one of the 13 best Fortune 500 stocks to invest in now.
On October 16, 2025, Bloomberg reported that Elon Musk’s AI startup xAI is working on a $20 billion lease-to-own deal for NVIDIA Corporation’s chips. These chips will be used to power xAI’s second major data center, Colossus 2, in Memphis.
xAI, unlike competitors that rely on cloud partnerships, looks to own most of its data center infrastructure directly. The deal with NVIDIA Corporation is structurally arranged through a special purpose vehicle (SPV) created by Valor Equity Partners. The SPV will combine $7.5 billion in equity and $12.5 billion in debt to acquire the chips from Nvidia. Furthermore, an option for xAI to acquire the hardware at the end of the lease is also included.
Meanwhile, NVIDIA Corporation will contribute $2 billion in equity to the SPV, shifting most of the financial risk to Valor while supporting xAI’s AI compute ambitions.
NVIDIA Corporation is a global graphics, compute, and networking solutions provider, offering data center accelerated computing, AI software, networking, automotive platforms, robotics, and DGX cloud computing services.
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