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Elon Musk's xAI Secures $6 Billion in Series B Funding at $18 Billion Valuation, Plans Supercomputer

May 27, 2024, 05:40 AM

Elon Musk's artificial intelligence startup, xAI, has secured $6 billion in a Series B funding round. The funding round was backed by prominent venture capital firms including Andreessen Horowitz, Sequoia Capital, Valor Equity Partners, Tribe Capital, Vy Capital, Fidelity, and investors from Saudi Arabia. The new funds will be used to advance xAI's infrastructure, launch new products, and accelerate research and development. The company is valued at $18 billion pre-money and $24 billion post-money. Additionally, xAI plans to build a supercomputer dubbed the 'Gigafactory of Compute,' which will link 100,000 Nvidia H100 GPUs. This supercomputer is expected to be operational by fall 2025 and aims to significantly enhance the capabilities of xAI's AI models, including Grok. xAI may partner with Oracle to develop this massive computing project.