Musk's AI Company Also Invests in Nvidia... Company Value Doubles in 6 Months

Investment Attraction of 8.3 Trillion Won
xAI Value More Than Doubles in 6 Months

Elon Musk, CEO of Tesla, has seen the valuation of his artificial intelligence (AI) company xAI continue to rise.

According to CNBC on the 15th (local time), xAI is seeking to raise $6 billion (8.3 trillion KRW) in funding with a company valuation of $50 billion (69.7 trillion KRW). This valuation is $10 billion higher than the $40 billion estimated by The Wall Street Journal (WSJ) last month.

Of the $6 billion in this funding round, $5 billion is expected to come from Middle Eastern sovereign wealth funds, with the remaining $1 billion from other investors. Some of these investors are reportedly interested in increasing their investment size. The funding round is set to close next week.

The investment will be used to purchase 100,000 of the latest AI chips from Nvidia, a leader in AI chips. Musk recently announced plans to increase the number of graphics processing units (GPUs) going into xAI’s data center in Memphis, Tennessee, from 100,000 to 200,000. Tesla’s fully autonomous driving feature is also known to be based on this data center.

xAI is an AI company founded by Musk in July last year. In July, it launched an AI chatbot called Grok, and in August, it added image generation capabilities. Grok operates on Musk’s social media platform X (formerly Twitter). This is the first time in about five months since May that xAI has sought investment. At that time, xAI raised $6 billion. After that funding round, xAI’s valuation reached $24 billion, and in just six months, its value has more than doubled.