Musk denies seeking funds following CNBC's report of a $10 billion investment for xAI.
In a significant development for the AI sector, Elon Musk's newly launched startup, xAI, announced in July 2023 as an alternative to OpenAI's ChatGPT, has reportedly secured a massive $10 billion in a funding round. This news, however, contradicts Musk's earlier statement that xAI is not currently raising capital.
The funding, as per a CNBC report, is intended for expanding xAI's AI infrastructure through data centers. The report also suggests that the funds would be used for building data centers using Nvidia and AMD graphics processing units. However, the details about the intended use of the funds beyond building data centers and hiring talent are not specified.
The CNBC report also values xAI at $200 billion, which, if accurate, would be a significant increase from its July valuation of $75 billion. This potential valuation, if secured, could make xAI one of the most valuable companies in the world.
xAI's supercomputer cluster in Memphis, Tennessee, called Colossus, is claimed to be the largest in the world. The company has been increasing its data center capacity to train more advanced AI models.
Investor enthusiasm towards AI startups remains strong, despite doubts over tech industry spending. This is evident in the recent funding rounds of other AI companies. For instance, Anthropic recently raised $13 billion at a post-money valuation of $183 billion. Similarly, OpenAI is in early-stage discussions about a stock sale that could value the company at about $500 billion.
ByteDance is set to launch a new employee share buyback that will value the Chinese technology giant at more than $330 billion.
The competition for xAI in the AI sector is intense. The startup was launched as an alternative to OpenAI's ChatGPT, and its success will depend on its ability to deliver advanced AI models and services.
It's worth noting that no confirmation has been made about whether the funding has been secured by xAI. Morgan Stanley reported that xAI completed a $5 billion debt raise and a separate $5 billion strategic equity investment in late June. However, Musk has denied these reports, stating that xAI is not currently raising capital.
Despite the uncertainty surrounding the funding, xAI's potential growth and impact on the AI sector cannot be ignored. The company's ambitious plans for its AI infrastructure and models could shape the future of AI technology.
As more information becomes available, we will update this article to reflect the latest developments. Stay tuned for more updates on xAI and the AI sector.
Read also:
- Hematology specialist and anemia treatment: The role of a hematologist in managing anemia conditions
- Hackers Utilize GOLD SALEM to Infiltrate Networks and Evade Security Measures, Deploying Warlock Ransomware
- Southeast Asia's initial AI-linked battery-swapping station was launched by U Power
- Artificial Intelligence with independent agency could potentially intervene in cybercrises.
