Elon Musk’s xAI Secures $20 Billion in Funding Round Led by Nvidia

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Title : Elon Musk’s xAI Secures $20 Billion in Funding Round Led by Nvidia
Link : Elon Musk’s xAI Secures $20 Billion in Funding Round Led by Nvidia

Elon Musk’s artificial intelligence startup, xAI, has raised $20 billion in its latest funding round, with AI hardware powerhouse Nvidia leading the investment.

Bloomberg reports that Elon Musk’s xAI has successfully raised $20 billion in its latest funding round. The financing, which includes both equity and debt, was led by Nvidia, the leading chipmaker in the AI sector. The funding round, initially reported to be half the amount, has grown in size as xAI seeks to accelerate its AI investments and development.

The funding will be split between $7.5 billion in equity and up to $12.5 billion in debt through a special purpose vehicle (SPV). The SPV will be used to purchase Nvidia processors, which xAI will then rent for a period of five years. This unique deal structure, backed by the Nvidia chips rather than the company itself, could serve as a model for other tech firms looking to reduce their debt exposure.

Nvidia’s investment in xAI is part of the chipmaker’s strategy to help accelerate its customers’ AI investments. The company is investing as much as $2 billion in the equity portion of the transaction. Nvidia’s leaders have stated that they will use the company’s growing financial strength to speed up the deployment of artificial intelligence across the industry.

Breitbart News previously reported that Nvidia was making a massive $100 billion investment in Sam Altman’s OpenAI. The chipmaker’s investment in Altman’s hated rival Musk comes just days after OpenAI signed a deal with Nvidia’s own rival, AMD.

In addition to Nvidia, other notable investors in the funding round include Apollo Global Management, Diameter Capital Partners, and Valor Capital. Apollo is participating in both the equity and debt portions of the deal. (Ed note: Musk's xAI is an artificial intelligence company focused on building AI to accelerate human scientific discovery, and more. Large-scale energy solutions such as nuclear energy will be needed.) (Read More)