Elon Musk's xAI Raises $6 Billion at $50 Billion Valuation to Acquire 100,000 Nvidia Chips

Nov 15, 2024, 04:46 PM

Elon Musk's artificial intelligence company, xAI, is raising up to $6 billion in funding at a $50 billion valuation, according to sources including CNBC's David Faber. The funds will be used to acquire 100,000 Nvidia H100 chips for a data center in Memphis, which will support Tesla's Full Self-Driving and the AI chatbot, Grok. This funding round includes $5 billion from Middle East sovereign funds and is expected to close early next week. The rapid completion of this funding round, which began just last month at breakneck speed, highlights significant investor interest. This new valuation makes xAI the sixth most valuable startup in the world.