Official announcements from xAI or the respective investor

Nvidia Acquires Stake in Elon Musk's xAI Amid Almost $30 Billion Retail Interest and 43% of $229 Billion Server Spending

Dec 25, 2024, 02:22 PM

Nvidia has acquired a minority stake in Elon Musk's artificial intelligence company, xAI. Musk expressed his appreciation for Nvidia's investment, stating, "It’s an honor to have @nvidia as an investor." This development comes amid a surge of retail investor interest in Nvidia, which was reported as the most-bought stock by retail traders in 2024, according to CNBC. Retail investors contributed nearly $30 billion into Nvidia shares this year, as noted by Vanda Research. Nvidia is also positioned to surpass Tesla as the top retail investor favorite, a title Tesla held last year. Additionally, Nvidia has captured 43% of the global server spending, which reached $229 billion this year, as companies prioritize AI infrastructure investments.