xAI's Funding Surge: New Investments Propel AI Startup to $20 Billion
Elon Musk's AI startup, xAI, is set to raise $20 billion, significantly more than initially planned, with investments from Nvidia. The funding will aid in purchasing Nvidia processors for xAI's data center, Colossus 2. The financing comprises $7.5 billion in equity and $12.5 billion in debt.
Elon Musk's AI enterprise, xAI, is escalating its financing efforts, with a goal of reaching $20 billion in its current funding round. Notably, this includes a substantial equity investment from tech giant Nvidia.
Bloomberg News indicates that Nvidia will contribute as much as $2 billion in equity, as part of a deal inclusive of both equity and debt, tied to the acquisition of Nvidia's advanced graphics processing units for xAI's Colossus 2 data center. The financing structure allows for $7.5 billion in equity and up to $12.5 billion in debt.
Officials from Nvidia chose not to comment, while xAI is yet to provide a statement. Despite previous reports of a $10 billion raise, Musk has emphasized that capital growth is in the pipeline, but not imminent.
(With inputs from agencies.)
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