xAI Raises $6 Billion to Build Powerful AI Supercomputers

Elon Musk's xAI has secured $6 billion in its latest funding round, bringing its total capital to $12 billion and valuing the company at $50 billion. The round was backed by 97 investors, including major players like Nvidia and AMD. Key Investors and Funding Goals Key investors in this funding round include: Nvidia AMD Andreessen Horowitz Blackrock Fidelity Kingdom Holdings Sequoia Capital The company plans to raise more funds next year to challenge established leaders in the generative AI market. Supercomputer Ambitions xAI is building the Colossus supercomputer, which currently utilizes 100,000 Nvidia H100 GPUs and is expected to expand to 200,000 GPUs soon. Musk aims to ultimately build a supercomputer powered by one million GPUs. The $6 billion raised could potentially purchase a supercomputer with 100,000 Nvidia GPUs, as GPUs typically make up roughly half the cost of a supercomputer cluster. These powerful machines will be used to train more sophisticated AI models, aiming to compete w…