Artificial-intelligence companies have gotten creative as they look to finance the chip purchases seemingly required to keep pace in the technological arms race. A new report suggests Elon Musk’s xAI might soon join the crowd.

Bloomberg News reported late Tuesday that xAI, which operates the Grok model, was planning to

scale up its fundraising ambitions in the form of a $20 billion deal with an unusual structure. The report said the financing “includes equity and debt in a special-purpose vehicle” that will purchase Nvidia Corp. NVDA chips and then rent them to the AI startup.