Elon Musk's xAI raising up to $6 billion to purchase 100,000 Nvidia chips for Memphis data center

Elon Musk's artificial quality institution xAI is raising up to $6 cardinal astatine a $50 cardinal valuation, according to CNBC's David Faber.

Sources told Faber that the funding, which should adjacent aboriginal adjacent week, is simply a operation of $5 cardinal expected from sovereign funds successful the Middle East and $1 cardinal from different investors, immoderate of whom whitethorn privation to re-up their investments.

The wealth volition beryllium utilized to get 100,000 Nvidia chips, per sources acquainted with the situation. Tesla's Full Self Driving is expected to trust connected the caller Memphis supercomputer.

Musk's AI startup, which he announced successful July 2023, seeks to "understand the existent quality of the universe," according to its website. Last November, X.AI released a chatbot called Grok, which the institution said was modeled aft "The Hitchhiker's Guide to the Galaxy." The chatbot debuted with 2 months of grooming and had real-time cognition of the internet, the institution claimed astatine the time.

With Grok, X.AI aims to straight vie with companies including ChatGPT creator OpenAI, which Musk helped commencement earlier a struggle with co-founder Sam Altman led him to depart the task successful 2018. It volition besides beryllium vying with Google's Bard exertion and Anthropic's Claude chatbot.

Now that Donald Trump is President-elect, Elon Musk is opening to actively enactment with the caller medication connected its attack to AI and tech much broadly, arsenic portion of Trump's interior ellipse successful caller weeks.

Trump plans to repeal President Biden's executive bid connected AI, according to his campaign platform, stating that it "hinders AI Innovation, and imposes Radical Leftwing ideas connected the improvement of this technology" and that "in its place, Republicans enactment AI Development rooted successful Free Speech and Human Flourishing."