Elon Musk's xAI Seeks Funding at $40 Billion Valuation to Double 'Colossus' Cluster

Oct 29, 2024, 05:01 PM

Elon Musk's artificial intelligence startup xAI is reportedly in early talks with investors to raise new funding that would value the company at approximately $40 billion, according to sources familiar with the matter as reported by The Wall Street Journal. This valuation represents a significant increase from its previous valuation of $24 billion, following a $6 billion funding round earlier this year. The additional capital is expected to support xAI's expansion plans, including doubling the size of its 'Colossus' computing cluster and the acquisition of up to 100,000 GPUs. The move underscores Musk's ambition to position xAI as a major competitor in the AI industry.