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Investing.com-- Elon Musk-backed artificial intelligence startup xAI increased a planned capital raise to as much as $20 billion, including an investment from NVIDIA Corporation (NASDAQ:NVDA), to procure more AI processors, Bloomberg reported on Tuesday.
The financing is largely aimed at procuring more Nvidia chips that xAI plans to use in its upcoming Colossus 2 data center in Memphis, the report said. The capital raise includes equity and debt.
Nvidia will invest as much as $2 billion in the equity portion of the deal, Bloomberg reported. The move is largely part of Nvidia’s strategy to help accelerate its customers’ AI investments, with the chipmaker having pledged about $100 billion to OpenAI last week.
Previous reports said xAI was aiming to raise around $10 billion in its ongoing funding round. Other reports also valued xAI at $200 billion in September, making it among the most valuable startups in the world, behind OpenAI.