Elon Musk’s AI startup xAI is seeking up to $12 billion for expansion, partnering with Valor Equity Partners. The funds would purchase Nvidia chips for a new data center to power AI chatbot Grok. Some lenders want repayment in 3 years to limit risk in the competitive AI market dominated by OpenAI and Google. Musk plans to train Grok on 230,000 GPUs and launch another supercluster with 550,000 chips. xAI is expected to spend $13 billion by 2025 and may be valued at $170-200 billion. Musk denies seeking more funding, stating “We have plenty of capital.”

Read more at Yahoo Finance: Musk’s xAI to raise up to $12 billion in debt for AI expansion, WSJ reports