Elon Musk’s AI just raised $6 billion to combat ChatGPT

Elon Musk founded xAI last summer, and today he announced that he has raised $6 billion in funding. Why does he need so much money…

You surely remember that Elon Musk founded xAI last summer, and today he has announced that he has raised 6 billion dollars in funding, which will allow his AI to enter the booming artificial intelligence market.

ChatGPT DOWNLOAD

Until now, xAI has released Grok, a supposedly bolder version of OpenAI’s ChatGPT available through Twitter, where the chatbot is currently only available to Premium subscribers.

According to xAI, the funding for this round comes from various sources, including Andreessen Horowitz, Sequoia Capital, and Saudi Prince Al Waleed bin Talal. Last year, a report from the Securities and Exchange Commission (SEC) indicated that xAI aimed to raise up to $1 billion in capital investments, and a few months ago, The Financial Times reported that it was seeking up to $6 billion.

They need a lot of money to develop their own supercomputer

The hardware capable of powering AI development is quite expensive: the upcoming Nvidia’s Blackwell B200 AI graphics cards cost between $30,000 and $40,000 each.

Last week, a report from The Information claimed that xAI would need 100,000 of Nvidia’s current H100 chips for a supercomputer that would power an upgraded version of its chatbot Grok AI. Apparently, Musk told investors that the plan is to launch the new data center in the fall of 2025.

The big tech companies have invested billions in AI companies like Anthropic, in addition to the resources that Google, Apple, Amazon, Microsoft, and Meta are investing in their own AI projects.

Microsoft has also signed a multi-billion dollar agreement with OpenAI, whose CEO, Sam Altman, is apparently seeking trillions of dollars more to revolutionize the global chip industry. Musk, a founding member of OpenAI, has sued the company claiming that it has abandoned its mission to benefit humanity.

ChatGPT DOWNLOAD

The race for AI is unleashed and millions of euros are being distributed like candies in search of a bigger piece of the pie.

Author: Chema Carvajal Sarabia

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