Bloomberg reported on Tuesday, citing informed sources, that the AI startup xAI, led by Elon Musk, is raising more funding than initially planned, including an investment in Nvidia shares, bringing its current funding round to $20 billion.
Bloomberg added that Nvidia is investing up to $2 billion in the equity portion of the deal, noting that the funding, which includes equity and debt, will be tied to Nvidia GPUs that xAI plans to use in its Colossus 2 data center.
The report indicated that xAI’s funding is split between about $7.5 billion in equity and up to $12.5 billion in debt, structured through a special purpose vehicle that will be used to purchase Nvidia processors.
In September, Elon Musk denied a CNBC report claiming that xAI would raise $10 billion at a $200 billion valuation post-funding. Musk added that “xAI will of course raise capital in the coming months, but not now.”
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