xAI, Elon Musk AI startup, to raise $20 billion after Nvidia boost funding round

Elon Musk’s AI startup xAI is raising more financing than initially planned, tapping backers including Nvidia Corp. to lift its ongoing funding round to $20 billion, according to people with knowledge of the matter.

The financing includes equity and debt in a special purpose vehicle that will buy Nvidia processors and rent them to xAI for use in its Colossus 2 project. That’s the name of its largest data centre site, which is located in Memphis.