Nvidia’s Stock Rises Thanks to Funding Deal with xAI

Nvidia’s stock saw an increase during trading on Wednesday, supported by a report indicating that the AI startup xAI plans to raise $20 billion to purchase chips from Nvidia.
The American chipmaker’s shares rose by 1.8%, reaching $188.48 at 5:58 PM Mecca time, after previously recording a 2.35% increase.
According to a report published by Bloomberg, xAI’s funding will be structured through a combination of debt and equity within a private entity that will purchase Nvidia chips and then lease them to xAI for use in the “Colossus 2” project, which is the company’s largest data center.
One source indicated that Nvidia will invest up to $2 billion in the equity portion of the funding deal, a strategy through which the chipmaker aims to accelerate its clients’ investments in the field of artificial intelligence.