It was a crystalline shard originating in the earliest times of the multiverse. In time, it came to be owned by the demon lord Graz'zt. The Dark Prince had no need of it for he already possessed power more than it could grant, so he stored it away in his treasure vault.
However, along with other treasures in the vault, the Infinity Spindle was eventually stolen by Graz'zt's then-treasurer, Raxivort, and fled to the Material Plane. Raxivort used the power of the Spindle to turn himself into a demigod. He would savor it only briefly.
As he had no need to get the Spindle back, Graz'zt unleashed his full vengeance on Raxivort by having his agents tell creatures all over the multiverse of the unimaginable power the Spindle could grant, and exactly which weak and miserable creature had it. Before he knew it, Raxivort was being hunted by all kinds of foes, all hungry for the Spindle's power. To throw them off the trail, Raxivort created in his image the race of creatures called xvarts wherever he went, while he remained in hiding and on the move across the planes.