Elon Musk’s AI company raises $6 billion

The investments would be used for products and infrastructure. According to the American business magazine Forbes, xAI refers to its AI model Grok and the high costs of a supercomputer that is used to train AI models. The start-up of the eccentric billionaire and ally of Donald Trump wants to eventually compete with OpenAI, the company behind ChatGPT.

xAI wants to increase the capacity of its AI supercomputer Colossus by doubling the number of graphics chips from market leader Nvidia (from 100,000 to 200,000). The company, founded in July 2023, previously raised $6 billion in May and is now valued at around $50 billion, Forbes estimates.

Nvidia is one of the investors in the latest round. AMD, another American semiconductor manufacturer, also contributed money, as did Blackrock, Sequoia Capital and Morgan Stanley.