03:18 PM EDT, 10/16/2025 (MT Newswires) -- (Updates with Nvidia ( NVDA ) response in the third paragraph.)

Elon Musk's xAI is planning a $20 billion lease-to-own deal for Nvidia ( NVDA ) chips for its Colossus 2 data center in Memphis, Tennessee, The Information reported Thursday, citing people familiar with the matter.

Valor Equity Partners, a longtime Musk backer, is raising the money for a special purpose vehicle to purchase Nvidia ( NVDA ) chips and lease them to xAI, one of the people said, according to the report. The vehicle comprises $7.5 billion in equity from Valor, $2 billion from Nvidia ( NVDA ), and $12.5 billion in debt, the report said.

An Nvidia ( NVDA ) spokesperson declined to comment, while xAI did not immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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