Elon Musk's xAI Raises 6 Billion Dollars in Series B Financing

TapTechNews May 27th, Elon Musk's artificial intelligence start-up company, xAI, announced in a blog post today that the company has raised 6 billion US dollars (TapTechNews note: currently about 43.56 billion Chinese yuan) in Series B financing, with investors including AndreessenHorowitz and Sequoia Capital, etc.

xAI said that this fund will be used to bring xAI's first batch of products to the market, build advanced infrastructure and accelerate the research and development of future technologies. More news will be announced in the coming weeks, and the pre-money valuation of xAI is 18 billion US dollars, Musk said in a post on X in response to the financing announcement.

xAI was founded in July 2023 and launched its first product, the Grok chatbot, last November. Recently, xAI has demonstrated the Grok-1.5 Vision multimodal model, which can handle image, document and table content in addition to text.

The new round of financing helps xAI obtain more AI computing power resources to compete with openAI and Anthropic rivals in the model competition: Musk recently said that xAI's next-generation Grok model is being trained on 20,000 Nvidia H100s, and the demand for AIGPUs in the future Grok3 will also increase to 100,000.

And in order to make Grok more intelligent, Musk plans to connect these dedicated GPUs in series into a giant supercomputer and calls it the computing power super factory. Musk told investors that the scale of this chipset connected by Nvidia H100s will be at least 4 times the size of the current largest GPU cluster after it is built.

Elon Musk said that he hopes to put this supercomputer into operation by the autumn of 2025 and take personal responsibility for on-time delivery.