Media reported on large investments in Musk's new startup

Nvidia will invest up to $2 billion in AI startup xAI, the funds will be directed to purchase chips for the company's data center in Memphis.

Elon Musk's artificial intelligence (AI) startup xAI is getting closer to its goal of raising $20 billion, including through investments from Nvidia, Bloomberg reports, citing sources.

According to sources, Nvidia will invest up to $2 billion in equity. The funds are planned to be used for purchasing chips for xAI's largest data center, Colossus 2, in Memphis.

The total funding amount includes about $7.5 billion in equity and up to $12.5 billion in borrowed funds, which will be structured through a special entity. This entity will purchase Nvidia processors, and xAI will lease them over five years.

According to sources, Apollo Global Management and Diameter Capital Partners are also participating in the financing.