Elon Musk is making headlines again by purchasing 100 thousand chips for his latest venture, $XAI , dedicated to artificial intelligence (AI) initiatives. With $6 billion in funding raised for xAI, Musk aims to bring the company's first products to market, establish advanced infrastructure, and expedite research and development of future technologies. This funding round attracted major investors like Andreessen Horowitz, Sequoia Capital, and Saudi Arabian Prince Al Waleed bin Talal.
The cost of developing AI is substantial, with Nvidia's upcoming Blackwell B200 AI graphics cards priced between $30,000 to $40,000 each. Reports indicate that xAI plans to utilize 100,000 of Nvidia's existing H100 chips to power an upgraded version of its Grok AI chatbot. Musk disclosed plans to launch a new data center by the fall of 2025 during investor discussions.
The competition in the AI arena is fierce, with tech giants like Google, Apple, Amazon, Microsoft, and Meta investing billions in AI projects. Microsoft has formed a significant partnership with OpenAI, while OpenAI CEO Sam Altman is seeking trillions of dollars to revolutionize the global chip industry. However, Musk has filed a lawsuit against OpenAI, alleging a deviation from its mission to serve humanity.
Elon Musk's latest move underscores the escalating race for AI chips, talent, and technology, positioning $XAI at the forefront of this rapidly evolving industry.
