Investing.com -- Elon Musk’s artificial intelligence startup xAI is working to secure up to $12 billion in additional funding for its expansion plans, according to a Wall Street Journal report published Tuesday. The funding effort is being coordinated through Valor Equity Partners, an investment firm with close connections to Musk. The firm’s founder, Antonio Gracias, who has longstanding ties to the billionaire entrepreneur, is currently in discussions with lenders to raise the capital. According to the report, which cited people familiar with the situation, the funds would be used to purchase a large quantity of advanced Nvidia (NASDAQ:NVDA) chips. These chips would then be leased to xAI for a new data center designed to train and power Grok, the company’s AI chatbot. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.