Elon Musk’s AI venture, xAI, is seeking up to $12 billion in new funding to support its growth strategy, according to a report from the Wall Street Journal released Tuesday.
The fundraising is being led by Valor Equity Partners, a firm with strong ties to Musk. Antonio Gracias, the firm’s founder and a longtime Musk associate, is reportedly in talks with lenders to secure the capital.
Sources familiar with the matter say the funds would go toward acquiring a large number of high-end Nvidia (NASDAQ: NVDA) chips. These chips would be leased back to xAI to help build a new data center, which will support the training and operation of Grok, the company’s AI-powered chatbot.
