Elon Musk’s xAI Plans $20 Billion Raise Backed by Nvidia for AI Project: The Pulse 10/08

Elon Musk’s artificial intelligence startup xAI is raising more financing than initially planned, tapping backers including Nvidia to lift its ongoing funding round to $20 billion, according to people with knowledge of the matter. The financing includes equity and debt in a special purpose vehicle that will buy Nvidia processors and rent them to xAI for use in its Colossus 2 project, said the people, who asked not to be identified because the information is private. That’s the name of its largest data center site, which is located in Memphis.
Nvidia is investing as much as $2 billion in the equity portion of the transaction, the people said, a strategy by the chipmaker that helps accelerate its customers’ AI investments. In French politics, outgoing French Prime Minister Sebastien Lecornu expressed optimism that an accord can be reached to allow the formation of a new government without fully endorsing a new proposal to rethink a controversial pension law as demanded by the Socialists.

Today’s guests: Henrietta Pacquement, Allspring Global Investments Senior Portfolio Manager, Asahi Pompey, Goldman Sachs Global Head of the Office of Corporate Engagement, Shumita Deveshwar, TS Lombard Chief India Economist

Chapters:
00:00:00 – The Pulse
00:00:51 – Gold Price $4000
00:03:32 – French Bonds Gain
00:08:09 – Fed Balance Sheet Runoff
00:10:14 – UK Statistics Error
00:12:29 – xAI, Nvidia Deal
00:14:47 – ASML Stock Drops After China Sales Probe
00:17:00 – Goldman Sach’s Asahi Pompey
00:21:51 – Bank of Spain Governor Escrivá
00:25:29 – Macron Pension Reform
00:26:50 – UK’s Starmer Visits India
00:33:32 – Jamie Dimon on Quarterly Earnings
00:38:24 – Leaders with Francine Lacqua: Ray Dalio
00:40:22 – Verisure IPO
00:44:10 – BMW Cuts Guidance
00:46:09 – UK Car Loans Refund
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