US EditionElon Musk's xAI Set For $20B Cash Surge — Nvidia Chips At The Heart Of His AI Dream
xAI's $20 billion raise combines $7.5 billion equity and $12.5 billion debt to secure up to one million Nvidia GPUs for its Memphis Colossus 2 data center expansion.
- Bloomberg News reported on Tuesday that Elon Musk’s xAI is raising up to $20 billion in new financing, with capital from investors including Nvidia and Apollo Global Management.
- This funding round follows xAI’s rapid expansion to build the Colossus 2 data centre in Memphis, which will rely on a large supply of Nvidia-powered hardware.
- The arrangement uses a dedicated investment vehicle to pool approximately $7.5 billion in equity, with Valor Capital taking a leading role, alongside up to $12.5 billion in debt that will be secured by the GPUs purchased.
- Nvidia plans to invest up to $2 billion in xAI’s equity fundraising, and Musk indicated that while xAI intends to seek additional funding in the near future, it is not doing so at the present moment.
- If xAI’s aggressive growth and computing expansion continue, financial strain could arise, as costs may reach $13 billion in 2025 alone.
20 Articles
20 Articles
Elon Musk's xAI Set For $20B Cash Surge — Nvidia Chips At The Heart Of His AI Dream
Elon Musk's xAI is set to secure a massive $20 billion in new funding, with Nvidia playing a pivotal role as both investor and supplier. The deal underscores how crucial Nvidia's chips are to Musk's
Circular investment deals by major AI companies spark ‘bubble’ fears
AI firms signed major deals with chipmakers, but the agreements raised concerns that industry funding is increasingly circular — and possibly concealing a bubble. Elon Musk’s xAI raised $20 billion, a chunk of which comes from Nvidia, with the expectation that it would be used to buy Nvidia chips; Nvidia also recently backed OpenAI with up to $100 billion to build data centers filled with Nvidia semiconductors. Separately, OpenAI agreed a partne…
Elon Musk responds to OpenAI in the financial battle around the artificial intelligence (AI) business. The world’s richest man’s start-up xAI is going to attract more resources than originally planned in the currently open funding round, to reach $20 billion (about €17.22 billion, at the current change), compared to the initial forecast of $12 billion. Continue reading
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