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Elon Musk's xAI reportedly raising multibillion-dollar funding round to upgrade its supercomputer - SiliconANGLE

Nov 15, 2024 - siliconangle.com
Elon Musk's xAI Corp. is reportedly raising a multibillion-dollar funding round, worth up to $6 billion, to upgrade its supercomputer. The majority of the funding, $5 billion, is expected to come from Middle Eastern sovereign funds, with the rest from other investors. The deal is expected to value xAI at $50 billion. The funds will be used to deploy 100,000 more GPUs in its Memphis data center and possibly purchase other equipment from Nvidia.

The upgraded supercomputer, known as Colossus, will support Tesla Inc.'s Full Self Driving software and xAI's own AI development efforts. The additional computing capacity will enable xAI to build large language models (LLMs) with more advanced capabilities. The hardware upgrade comes as OpenAI is also reportedly working to expand its AI development infrastructure.

Key takeaways:

  • Elon Musk's xAI Corp. is reportedly raising a multibillion-dollar funding round, with an investment worth up to $6 billion, to upgrade its supercomputer.
  • The bulk of the capital, $5 billion, will reportedly be provided by sovereign funds in the Middle East, and the rest from other investors.
  • xAI has built a supercomputer in Memphis that features 100,000 of Nvidia Corp.’s H100 graphics cards, and plans to deploy 100,000 more GPUs in its Memphis data center with the new funding.
  • The upgraded supercomputer will help power Tesla Inc.’s Full Self Driving software and support xAI’s own AI development efforts.
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