Elon Musk’s xAI raises up to $6 billion to buy 100,000 NVIDIA chips for Memphis data center

Elon Musk’s artificial intelligence company xAI has raised up to $6 billion at a $50 billion valuation, according to CNBC’s David Faber.

The financing is expected to close early next week and will include a combination of $5 billion expected from a Middle East sovereign wealth fund and $1 billion from other investors, people familiar with the matter told Faber. It is said that some investors wish to increase their investment again.

That money will be used to win 100,000 Nvidia Chip, according to a person familiar with the situation. tesla‘s fully autonomous driving is expected to rely on the new Memphis supercomputer.

The AI ​​startup, announced by Musk in July 2023, aims to “understand the nature of the universe,” according to its website. Last November, X.AI released a chatbot called Grok, which the company says was modeled after The Hitchhiker’s Guide to the Galaxy. The chatbot debuted after two months of training and had real-time knowledge of the internet, the company claimed at the time.

With Grok, X.AI aims to compete directly with companies such as OpenAI, the developer of ChatGPT. OpenAI helped Musk launch it before he pulled out of the project in 2018 due to conflicts with co-founder Sam Altman. It will also compete with Google’s Bard technology and Anthropic’s technology. Claude chatbot.

Now that Donald Trump is president-elect, Elon Musk has begun actively working with the new administration on a broader approach to AI and technology as part of Trump’s inner circle in recent weeks.

According to his campaign platform, President Trump plans to rescind President Biden’s executive order on AI, which it says will “hinder AI innovation and impose radical leftist ideas on the development of this technology” and “instead, the Republican Party will I support AI development.” freedom of speech and human flourishing. ”