Elon Musk’s artificial intelligence venture, xAI, is seeking to raise as much as $20 billion in its ongoing fundraising campaign, exceeding earlier targets, according to sources cited by Bloomberg News. The latest financing round includes a substantial equity injection from Nvidia, the leading supplier of advanced graphics chips for AI, with the chipmaker poised to commit as much as $2 billion.
The financing package, structured via a special purpose vehicle, will be used to purchase Nvidia’s cutting-edge processors for xAI’s new data center, Colossus 2. The funding round comprises roughly $7.5 billion in equity and up to $12.5 billion in debt, Bloomberg reported, referencing people familiar with the transaction.
As the race to develop advanced AI intensifies, access to large-scale data center capacity and top-tier computing hardware such as Nvidia GPUs is considered vital. This demand is reflected in U.S. bond markets, where technology firms have already raised approximately $157 billion this year—representing a 70% increase over the previous year.
xAI’s appetite for capital remains significant. Having previously brought in about $10 billion in corporate equity and debt earlier this year, the startup reportedly continues to burn through resources at a rate of about $1 billion each month, according to Bloomberg. Musk has drawn support from his portfolio companies—including SpaceX—for xAI’s fundraising efforts. Additionally, Tesla shareholders are slated to vote later this year on whether the automaker should also back xAI financially.
