Elon Musk & NVIDIA Are Betting $20 Billion on AI – and Crypto Has Reason to Pay Attention!

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What's going on?

According to Bloomberg News on October 7, billionaire Elon Musk's artificial intelligence start-up xAI is about to successfully Capital , double the original plan.

The funding xAI is set to receive will be Chia between about $7.5 billion in equity and up to $12.5 billion in debt, of which Nvidia is expected to invest up to $2 billion in Capital . The rest will come from other institutional investors.

The money will be used to buy tens of thousands of high-end GPU chips – the “golden” chips in the era of artificial intelligence – to build Colossus 2 , a giant AI data center in Memphis (USA).


Why is this important?

Because this is not just a Capital deal , but a new financial model is emerging:

“Computing power” (chip power) is being XEM as an investable asset.

Just like you invest in gold, real estate or Bitcoin,
Now, VCs are pouring money into GPUs – because in the AI ​​world, whoever has the chips wins.


NVIDIA is doing something no one has ever done before

NVIDIA used to sell chips. Now they invest money in the customers who buy their chips.

  • NVIDIA invests Capital → startups use that Capital to buy GPUs → NVIDIA sells chips → startups use GPUs to train AI → create more demand for GPUs.

It's a perfect loop : NVIDIA sells and profits from its partners' success.
In other words, they create their own market.


What does this have to do with crypto?

This story touches the crypto world at a very interesting point:

Both Bitcoin and AI rely on computing power.

  • With Bitcoin → Hash power creates cryptocurrency.

  • With AI → GPU power creates artificial intelligence.

When computing power is considered an asset that can be bought, sold, or rented,
Which means that one day, “compute” could be Tokenize like Bitcoin or Ethereum.

That is why many are calling this the beginning of the “Compute Finance” era.


Where is the real money going?

The deal between xAI and NVIDIA is just the tip of the iceberg.
The AI ​​industry is witnessing a storm of infrastructure investment worth hundreds of billions of dollars:

  • OpenAI signs multi-billion dollar deal to use AMD chips.

  • Meta Platforms spends $29 billion to expand AI data center.

  • Oracle raises $38 billion in debt for cloud infrastructure.

  • And this year alone, tech companies have issued more than $150 billion in bonds , up 70% from 2024.

While many traders are still busy looking at Bitcoin charts,
Real money is flowing into “brain mines” — where GPUs act as productive assets.


Elon Musk is betting big

xAI is currently burning through $1 billion a month , but Musk believes this is the beginning of a standalone AI empire — one that will connect with Tesla (self-driving cars), Optimus (robotics), and X (super apps).

Colossus 2 will be the world's first “intelligent factory,” and if successful, it could change the way companies create value – not just with products, but with data processing capabilities.


What does this mean for crypto investors?

  1. Compute is becoming an asset – just like Bitcoin.
    → In the future there may be Token representing GPU or computing power.

  2. xAI's Capital structure resembles the RWA (Real World Asset) model.
    → GPUs are financialized “real assets”, similar to bonds or real estate on-chain.

  3. Big money is shifting.
    → AI infrastructure is currently the hottest Capital – ​​and crypto could be the next beneficiary as the technology converges.


Conclusion: This is not just about AI – this is about the cash flow of the future

NVIDIA doesn't just sell chips, Musk doesn't just raise Capital.
They are redefining the concept of property in the age of artificial intelligence.

For crypto investors, this is a clear signal that:

“The assets of the future are not just on the blockchain, but in data centers.”

And when these two worlds meet —
AI + Crypto — it could be the biggest growth cycle since the Internet.

Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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