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 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”.