xAI, the AI startup run by Tesla (TSLA) CEO Elon Musk, is working with Valor Equity Partners to secure up to $12B more for its expansion plans, just weeks after raising $10B through sales of stock and debt, The Wall Street Journal’s Berber Jin, Peter Rudegeair, and Matt Wirz report. The money would be used to buy a significant supply of advanced Nvidia (NVDA) chips that would be leased to xAI for a new data center meant to help train and power the AI chatbot Grok, according to the report. The startup will likely have to raise even more in the coming months, given the significant sums of cash needed to train large AI models, the report adds.
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