Elon Musk can’t stop. This time, Musk is purchasing 100 thousand chips for his new artificial intelligence initiative xAI. Musk announced that he raised $6 billion in funding for xAI, which he founded last summer. So, what will this huge budget be used for? Let’s examine this exciting news in detail.
Elon Musk is buying 100 thousand Nvidia-branded chips for his artificial intelligence company xAI
This $6 billion raised will be used to bring xAI company’s first products to market, create advanced infrastructure, and accelerate research and development of future technologies. So far, xAI has introduced a chatbot called Grok, which it developed as a rival to OpenAI’s ChatGPT. Grok is currently only available to X Premium subscribers.
In this funding round, Andreessen Horowitz, Sequoia Capital and Prince of Saudi Arabia Giant investors such as Al Waleed bin Talal took part. Last year, xAI announced it was seeking equity investment of up to $1 billion. However, a few months ago, The Financial Times reported that xAI was seeking $6 billion, and Musk denied the report at the time. Now we see that $6 billion has actually been collected.
Developing artificial intelligence is not cheap. Nvidia’s new release Blackwell B200 Each AI graphics card 30 thousand to 40 thousand dollars It varies between . According to a report last week, xAI is available from Nvidia to support an upgraded version of its Grok AI chatbot. 100 thousand of H100 chips quantity will be required. Musk told investors they plan to launch the new data center in the fall of 2025.
The race for AI chips, talent and technology has never been this competitive. Major technology giants such as Google, Apple, Amazon, Microsoft and Meta spend billions of dollars on artificial intelligence projects. Microsoft has formed a multibillion-dollar partnership with OpenAI. OpenAI CEO Sam Altman is seeking trillions of dollars to revamp the global chip industry. Musk, on the other hand, is suing OpenAI, claiming that it has deviated from its mission to benefit humanity.
Elon Musk stated that he would prefer to develop products other than Tesla regarding artificial intelligence and robotics. Tesla shareholders will vote on whether to bring back Musk’s $56 billion pay package. The annual meeting will be held on June 13.
Let’s see what else awaits us in the world of artificial intelligence. We need to be ready, because Elon Musk is playing big again. What are you thinking? You can write your opinions in the comments section below.
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