Proactive Investors - Elon Musk’s artificial intelligence company xAI is contemplating a funding round that would value the developer of ChatGPT competitor Grok at $40 billion, according to a Wall Street Journal report.
Musk is reportedly seeking multiple billions of dollars to scale the business, which is on a self-described mission “to advance our collective understanding of the universe”.
Grok’s large-language model (LLM) is integrated into Musk’s social media website X, formerly called Twitter before the billionaire took it private in 2022 via a $44 billion transaction.
xAI completed a $6 billion funding round in May, which valued the business at around $24 million.
The new investment will likely go to expanding on xAI ‘Colossus’ supercomputer cluster, which is built on 100,000 Nvidia (NASDAQ:NVDA) graphics processing units.
According to Nvidia, xAI wants to double the size of this cluster to 200,000 GPUs.
Musk has called Colossus “the most powerful training system in the world”.