📣 Elon Musk’s xAI Aims for $40 Billion Valuation
posted 31 Oct 2024
xAI, the AI startup founded by Elon Musk, is in talks to raise investment in a new funding round that would bring its valuation to $40 billion.
According to The Wall Street Journal, people familiar with the matter said investment talks are in the early stages and could change or fall apart.
Elon Musk founded xAI in July 2023 to advance scientific discovery of the universe and create AI products. xAI is behind the development of Grok, an AI chatbot that competes with OpenAI’s ChatGPT, Google’s Gemini, Anthropic’s Claude, and other AI models on the market.
xAI uses data from X (formerly Twitter) to train its AI models. The startup has built the largest AI data center in the world in Memphis, Tennessee.
Recently, Elon Musk announced xAI’s plans to expand the data center from 100,000 Graphics Processing Units (GPUs) to 200,000 using NVIDIA’s Hopper chips.
Overall, AI startups have been growing at a rapid rate. Earlier this month, OpenAI raised $6.6 billion in private funding, bringing its valuation to $157 billion.
Other notable investments include Microsoft’s $10 billion stake in OpenAI and Meta's $30 billion investment in AI training. These investments reflect the increasing confidence of investors in the potential of AI technologies.
