A group of investors including Nvidia are backing Elon Musk’s xAI in an ongoing funding round that has racked up $20 billion thus far, according to a report.

The financing round includes debt and equity in a special purpose vehicle that will buy Nvidia chips and rent them to xAI, people with knowledge of the matter told Bloomberg.

Musk’s AI firm will then use the processors for its Colossus 2 project – its massive Memphis data center, the report said.

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Jensen Huang’s chipmaker is investing as much as $2 billion in the equity portion of the transaction, sources told Bloomberg.

Apollo Global Management and Diameter Capital Partners are participating in the debt raise, while Valor Capital is leading the equity part of the deal, according to the report. Apollo is also investing in xAI.

Nvidia declined to comment. Apollo, Diameter, Valor and xAI did not immediately respond to The Post’s requests for comment.

XAI plans to split the funding into $7.5 billion of equity and as much as $12.5 billion of debt in the special purpose vehicle, sources told Bloomberg.

It will be used to buy Nvidia processors and rent out the chips for five years, according to the report.

The complex deal structure could be used by other companies looking to decrease debt exposure while continuing their push into AI.

Tech companies have poured billions of dollars into AI infrastructure, rushing to build out costly data centers that can power the emerging technologies.

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AMD said Monday that it has reached a deal to supply OpenAI with hundreds of thousands of AI chips over several years, offering the firm a potential 10% stake in the company.

Mark Zuckerberg’s Meta has reached several multibillion-dollar deals, including a recent $29 billion financing package for new data center sites.

Oracle has also raised a $38 billion debt package for these power-hungry data centers.

Top executives at Nvidia have said they plan to use financing to speed up AI advancements not just at their company, but across the entire industry.

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The firm’s chief financial officer, Colette Kress, said at a Goldman Sachs conference in September that Nvidia is seeking out strategic stock repurchases and acquisitions – but the priority is using cash to help other companies ramp up their AI efforts.

Musk’s AI firm is also hungry for extra capital, as companies across the tech sector notch huge funding rounds with their eyes set on new infrastructure projects.

Earlier this year, xAI raised about $10 billion of corporate equity and debt. But that tall number likely isn’t enough, as the company has been burning through about $1 billion a month, according to a Bloomberg report.

Musk – the world’s richest person with a $484 billion net worth, per Forbes – has turned to his other companies, including rocket and space exploration firm SpaceX, for investment opportunities.

Investors in Tesla are scheduled to vote later this year on whether his electric vehicle maker should also invest in xAI.

His portfolio of companies have grown more entangled as Musk has argued that AI tech is crucial to the success of his other firms – like fully autonomous cars and robots at Tesla.