Latest news: Nvidia (NVDA) is in talks with Elon Musk regarding a potential investment in artificial intelligence (AI) startup xAI.
XAI is an artificial intelligence company founded by Musk, and its large language model Grok has been deployed on the social media platform X. Although Grok was launched later than competitors such as OpenAI's ChatGPT, it relied on the huge user base of the X platform and developed at an astonishing speed.
The representative of xAI revealed to potential investors that Nvidia has discussed the latest round of financing for xAI.
Last Friday's public report stated that Musk's xAI aims to raise billions of dollars, bringing the company's valuation to approximately $40 billion.
A report from The Information states that Musk has held talks with technology and venture capital firms such as Sequoia Capital, Andreessen Horowitz, and Vy Capital.
It is not uncommon for chip manufacturers like Nvidia to jointly invest in projects with customers. Even if Nvidia invests in Musk's company, xAI's competitors will still purchase chips from Nvidia.
In the B-round financing in May this year, xAi raised $6 billion, with a pre financing valuation of $18 billion. The company stated at the time that the new funding would help it bring its first products to market, develop advanced infrastructure, and accelerate research and development.
Two sources said that Musk is expected to conduct another large-scale financing round in January next year, at which time the valuation of xAI may reach as high as $75 billion. The growth rates of financing and valuation are both astonishing.
In September of this year, the company launched the Colossus 100k H100 training cluster. Musk wrote on social platform X that it is the world's most powerful artificial intelligence training system. In addition, its scale will double in a few months, reaching 200k (50k H200x).