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Elon Musk’s xAI Raises £4bn in Series B Funding

Written by Mon 27 May 2024

Image Credit: Reuters

Elon Musk’s artificial intelligence (AI) startup, xAI, has raised £4 billion ($6 billion) in series B funding round.

This funding round has brought the company’s total valuation to £18.8 billion ($24 billion) after the investment. xAI was founded by Musk as a competitor to OpenAI.

The pre-money valuation was £14.1 billion ($18 billion), said Musk in a post on X (formerly Twitter). The money will help xAI bring its first products to market, create advanced infrastructure, and speed up the development of future technologies. 

In a separate X post, Musk added that there will be more announced in the coming weeks.

Last month, Elon Musk predicted AI surpassing human intelligence could emerge as early as this year or by 2026. Elon Musk told the CEO at Norges Bank Investment Management, Nicolai Tangen, that the capabilities of AI are constrained by electricity availability. 

Musk said that training for the latest version of his xAI chatbot, Grok, will begin this month. He cited the absence of an advanced chip as a constraint on training Grok’s version 2 model.

Musk added training the Grok 2 model utilised around 20,000 NVIDIA H100 GPUs, with future iterations like Grok 3 requiring 100,000 of these chips. Musk highlighted the significance of chip shortages as a major obstacle in AI development but stressed electricity supply will become crucial in the coming years.

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Written by Mon 27 May 2024

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