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The financing, which includes equity and debt, would be tied to the Nvidia graphics processing units (GPUs) that xAI planned to use in Colossus 2, said the people, who asked not to be identified because the information was private. That is the name of its largest data centre site, which is located in Memphis, Tennessee.
Nvidia was investing as much as US$2 billion in the equity portion of the deal, the people said, a strategy by the chipmaker that helps accelerate its customers’ AI investments. XAI’s fundraising effort, previously reported by Bloomberg at half the amount, may continue to grow.
A representative for Nvidia declined to comment. A spokesperson for xAI did not respond to a request for comment. Musk posted on X in September that the company was “not raising any capital right now”.
The massive capital raise is just the latest for the AI industry, which has seen major tech companies invest tens of billions of dollars at a frenetic pace to build the infrastructure necessary to develop top AI models.
