Nvidia helps boost xAI funding round to $20 billion
xAI’s latest funding round has now doubled to $20 billion from $10 billion a month ago, thanks in part to backing from Nvidia, which invested $2 billion in the equity portion of the transaction, Bloomberg reports. In an interview with CNBC, Nvidia CEO Jensen Huang confirmed the investment, adding that his “only regret” was that he didn’t give xAI more money.
The mix of $7.5 billion in equity and $12.5 billion in debt will finance a special purpose vehicle that will purchase Nvidia chips that xAI will then rent. It’s one of many circular AI deals these days that’s contributing to chatter over an AI bubble by some, while being seen by others as a rational way for industry leaders to boost the potential size of the addressable market and lift their longer-term prospects in the process.
Investors in Elon Musk’s other company, Tesla, will vote next month at the company’s annual shareholder meeting on whether to invest in xAI as well — an outcome Musk has he said supports.
The mix of $7.5 billion in equity and $12.5 billion in debt will finance a special purpose vehicle that will purchase Nvidia chips that xAI will then rent. It’s one of many circular AI deals these days that’s contributing to chatter over an AI bubble by some, while being seen by others as a rational way for industry leaders to boost the potential size of the addressable market and lift their longer-term prospects in the process.
Investors in Elon Musk’s other company, Tesla, will vote next month at the company’s annual shareholder meeting on whether to invest in xAI as well — an outcome Musk has he said supports.
