AdvertisementAdvertisementBusinessFILE PHOTO: xAI logo is seen in this illustration taken, February 16, 2025. REUTERS/Dado Ruvic/Illustration/File Photo08 Oct 2025 07:29AM (Updated: 08 Oct 2025 07:58AM) Bookmark Bookmark WhatsApp Telegram Facebook Twitter Email LinkedInRead a summary of this article on FAST.Get bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST Elon Musk's AI startup xAI is raising more financing than initially planned, including an equity investment from Nvidia, to bring its ongoing funding round to $20 billion, Bloomberg News reported on Tuesday, citing people with knowledge of the matter.Nvidia is investing as much as $2 billion in the equity portion of the deal, Bloomberg reported, adding that the financing, which includes equity and debt, will be tied to the Nvidia graphics processing units that xAI plans to use in its data center Colossus 2.XAI's financing would be split between about $7.5 billion of equity and as much as $12.5 billion of debt, and is structured through a special purpose vehicle that will be used to buy Nvidia processors, the report said.Nvidia declined to comment, while xAI did not immediately respond to a request for comment.In September, Elon Musk denied a CNBC report that said xAI was raising $10 billion at a post-money valuation of $200 billion. Musk added that "xAI will of course raise capital in the coming months, just not right now."Musk launched xAI in July 2023 as an alternative to OpenAI's ChatGPT.Source: ReutersNewsletterWeek in ReviewSubscribe to our Chief Editor’s Week in ReviewOur chief editor shares analysis and picks of the week's biggest news every Saturday.Sign up for our newslettersGet our pick of top stories and thought-provoking articles in your inboxSubscribe hereGet the CNA appStay updated with notifications for breaking news and our best storiesDownload hereGet WhatsApp alertsJoin our channel for the top reads for the day on your preferred chat appJoin hereAlso worth readingContent is loading...Expand to read the full storyGet bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST