Public announcements from xAI or involved companies, reported by major financial news outlets

Nvidia in Talks to Invest in Elon Musk's xAI, Founded in 2023, Amid $40 Billion Valuation

Nov 1, 2024, 09:08 PM

Nvidia is reportedly in discussions to invest in Elon Musk's artificial intelligence company, xAI, which was established in 2023. The potential financing round is expected to attract significant strategic investors, with Nvidia identified as a likely participant. If successful, this funding would greatly enhance xAI's operations and capabilities. Investors in xAI, who are backing the venture at a valuation exceeding $40 billion, may find reassurance in the backing of a major player like Nvidia. The involvement of large tech firms such as Google, Meta, Apple, and Microsoft is also noted, as these companies have the financial capacity to absorb substantial losses in AI development over the coming years. However, concerns are raised regarding xAI's late entry into the competitive AI landscape without substantial backing.