Musk's xAI seeks billions in funding from private-credit market - report

Elon Musk’s xAI is seeking up to an additional $12B in funding through an effort assisted by one of his closest allies who has invested in — and served on the boards of — Tesla (NASDAQ:TSLA) and SpaceX.
Valor Equity Partners, founded by Antonio Gracias, is in discussions with private-credit funds to provide part of the $12B, The Wall Street Journal reported.
The newspaper added that the capital would be used to buy a large amount of Nvidia (NVDA) chips that would then be leased for use in a huge data center for xAI’s generative AI chatbot Grok.
Valor is aiming to finalize a deal with funds in the next few weeks. One issue among lenders is the size of the loan and repayment timeline, per the Journal. Some want it repaid in a three-year time frame and a cap placed on money borrowed.
xAI has yet to respond to a request for comment by Seeking Alpha.
Earlier this month, Musk denied a report in the Financial Times saying that xAI was preparing to hold another funding round.

Musk’s xAI seeks billions in funding from private-credit market – report