Photo: South China Morning Post

Nvidia is making a substantial investment in Elon Musk’s artificial intelligence startup, xAI, as part of a broader funding effort that could total $20 billion. This investment includes up to $2 billion in equity and is part of a strategy to accelerate AI development. The funds are meant to support xAI’s use of Nvidia’s powerful graphics processing units (GPUs) in its major data center, Colossus 2, located in Memphis, Tennessee. Despite Musk previously stating that the company was not raising capital, sources suggest the funding round may continue to grow. Nvidia’s involvement underscores its commitment to powering the next generation of AI infrastructure. This deal follows a broader trend in the AI industry, where large companies are investing tens of billions of dollars in infrastructure to build more advanced AI models. Other major tech firms like OpenAI, Meta, and Oracle are also securing significant deals to support AI innovation. With xAI’s rising prominence, the investment further highlights Nvidia’s role as a key player in AI’s technological advancements.

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Original title: Nvidia to invest in Musk’s xAI as part of US$20 billion funding

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