Why Nvidia Could Back XAI

Few are as skilled, and quick, as Elon Musk at raising capital—billions of dollars, no less. But if there’s one constant in Musk’s fundraising strategy, it’s that he often changes the details of a round at the last minute. 

Take the latest process to raise money for his 18-month-old artificial intelligence startup, xAI. Representatives of the startup, including Musk’s right-hand man, Jared Birchall, have been talking to investors about another megafinancing expected to value the company at around $45 billion, we reported. Musk’s usual backers have been in talks to invest, including Valor Equity Partners, Sequoia Capital, Andreessen Horowitz and Vy Capital. However, sources tell us xAI could raise mostly from strategic investors, potentially spurning some venture capital backers.

So which corporation might buy in? Our guess is Nvidia.