Elon Musk’s artificial intelligence (AI) startup xAI has approached its goal of raising $20 billion, including through investments from Nvidia, Bloomberg reports, citing sources.
According to sources, Nvidia will invest up to $2 billion in equity. The funds are planned to be used to purchase chips for the largest xAI Colossus 2 data center in Memphis.
The total amount of financing includes about $7.5 billion in shares and up to $12.5 billion in borrowed funds, which will be issued through a special structure. She will purchase Nvidia processors, and xAI will lease them for five years.
According to sources, Apollo Global Management and Diameter Capital Partners are also involved in the financing.
According to Bloomberg, xAI has already raised about $10 billion at the beginning of the year, but still needs financing, as it spends up to $1 billion a month. In September, Musk wrote that the company was “not raising capital.” Earlier, he suggested that Tesla shareholders invest their funds in xAI.