November 16, 2024 – According to a report published by CNBC yesterday (November 15th), Elon Musk’s AI venture, xAI, is gearing up to raise a fresh round of funding, targeting a valuation of 50billion.Thecompanyintendstoutilizethesefunds,amountingtoamaximumof6 billion, towards the procurement of 100,000 Nvidia GPUs. This significant investment is aimed at establishing the Memphis data center.
Reports indicate that xAI is on track to finalize this funding round in the upcoming week, securing 5billionfromMiddleEasternsovereignfundsandanadditional1 billion from various other investors.
As stated in the CNBC report, the primary objective of this $6 billion fundraising is to purchase the Nvidia chips, which will be the backbone of the Memphis data center. This center will provide crucial support for Tesla’s Fully Self-Driving (FSD) initiatives.
xAI, Musk’s artificial intelligence startup, emerged in July 2023 with a lofty ambition to “understand the true nature of the universe,” as proclaimed on its website.
Previously, it was reported that xAI had accomplished a remarkable feat by constructing the world’s largest AI cluster, named Colossus, in just 122 days. Looking ahead, the company has ambitious plans to double its GPU count by adding another 100,000 units, including 50,000 of the more advanced H200 model.
