XAI has raised $6 billion in a Series B funding round with participation from key investors including Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Company, Prince Alwaleed Bin Talal and Kingdom Holding, amongst others.
Elon Musk owns over half of xAI and xAI will be valued at about $24 billion after this fund raising. Elon has over $13 billion worth of xAI.
xAI has made significant strides over the past year. From the announcement of the company in July 2023, to the release of Grok-1 on X in November, to the recent announcements of the improved Grok-1.5 model with long context capability, to Grok-1.5V with image understanding, xAI’s model capabilities have improved rapidly. With the open-source release of Grok-1, xAI has opened doors for advancements in various applications, optimizations, and extensions of the model.
xAI will continue on this steep trajectory of progress over the coming months, with multiple exciting technology updates and products soon to be announced. The funds from the round will be used to take xAI’s first products to market, build advanced infrastructure, and accelerate the research and development of future technologies.
XAI will build a compute cluster that will be four times as powerful as the current largest AI data center. The current largest data center is likely a 400 Exaflop (100,000 Nvidia H100 data center). The Nvidia B200 is four times as powerful as the H100. This means XAI plans to build a 100,000 Nvidia H200 data center. It will take until Q1 2025 for Nvidia to make and supply those new chips.
After XAI builds Grok 2, the AI will be better than Open 4. After XAI builds Grok 3, the AI will be as good as GPT5. Grok 3 will need 100,000 H100s to train. A Grok 4 or 5 will use the 100,000 B200 chips. XAI catching up to OpenAI with Grok 3 will increase the value of the company to about $100 billion. XAI making Grok 4 will likely be worth about $200 billion. Elon’s share of XAI will be about $100 billion next year.
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
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Curious is Elon gets his bag (55 billion), and 25% of Tesla. Will he just roll X.AI into Tesla? Or will he keep it a separate company?
He has said Tesla’s most profitable product will be Optimus, but if Optimus’s brains are X.AI…that would put Tesla Inc. over a barrel.
Scary for $TSLA.
What is Tesla worth if Robotaxi AI will be licensed from XAI?
No X.A.I will NOT be the ability to drive the car, it will be (theoretically) the ability to have a conversation with the car i.e please drive me 500 feet further, or the car to have a conversation with the police if stopped, the driver does not just drive they communicate.