Elon Musk’s OpenAI competitor xAI raises $6 billion
- May 28, 2024
- 0
The investment gives xAI breathing room to bring its first products to market and build a supercomputer. Following the launch of xAI last summer, founder Elon Musk announced
The investment gives xAI breathing room to bring its first products to market and build a supercomputer.
Following the launch of xAI last summer, founder Elon Musk announced that the company was raising $6 billion from investors with the goal of “bringing its first products to market, building advanced infrastructure, and accelerating research and development of future technologies.”
xAI’s only product today is Grok, a ChatGPT-style AI chatbot available only to paying X users.
Elon Musk will be able to use all the money to make xAI competitive. According to The Information, the company is working on a supercomputer that includes 100,000 Nvidia H100 chips. Considering that each chip reportedly costs $30,000 to $40,000, the bill won’t be cheap. Not to mention the energy bill to keep the supercomputer running. Previously, Musk told investors that the new data center should be operational by the end of 2025.
When we will see the next step from xAI after Grok is anyone’s guess. In the meantime, the competition is not standing still: OpenAI is launching ChatGPT 4o, Anthropic with Claude 3 and Google with Gemini 1.5.
Source: IT Daily
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