Despite criticism and defaults in his previous ventures, Elon Musk remains a trusted leader for investors. His artificial intelligence company, xAI, has secured a significant new capital injection that bolsters its growth.
In its latest round of funding, xAI raised $6 billion, which will allow the company to accelerate its development and improve its infrastructure. Musk hopes this capital will help the firm compete more effectively with OpenAI, the organization behind ChatGPT, which has become a major rival in the field of artificial intelligence.
Although xAI only launched in July 2023, its growth has been remarkable. By May, it had raised the same amount of money, and now the company is valued at about $50 billion, according to CNBC.
Colossus Supercomputer and Technology Expansion
One of xAI‘s main goals with this new investment is to expand the capacity of its Colossus supercomputer. Musk plans to double the number of Nvidia microchips used in the system, from 100,000 to 200,000, to train its AI models, such as Grok.
The money for the investment round comes from big names in tech and finance, including Nvidia, AMD, Blackrock, Sequoia Capital and Morgan Stanley, who all jumped on board in the hope that xAI will succeed in revolutionizing the industry.
xAI: Competition with OpenAI
Musk is not new to artificial intelligence, but it was in 2022 that he really stepped up his interest and began to distance himself from OpenAI. With the recent investment and his focus on improving xAI‘s infrastructure, Musk is clearly determined to take his company to the next level in the fight against its main competitor.
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