Elon Musk plans to raise huge money for xAI after expanding its Colossus supercomputer to 200,000 NVIDIA GPUs. He told current investors they would put a proper value on the company, hinting at a new funding round. Reports suggest xAI might raise about $25 billion, valuing the company between $150-200 billion.
xAI recently bought the X platform in an all-stock deal that valued xAI at $80 billion and X at $33 billion, with $12 billion in debt. Musk paid $44 billion for X back in 2022 and has fixed its money problems since then. The platform generated $1.2 billion in adjusted EBITDA during 2024.
The company already makes around $1 billion in revenue yearly, surprising many investors who expected little income this year. xAI has started work on Colossus 2, its next training supercluster. This system will house up to 1 million NVIDIA GPUs and cost between $35 and $ 40 billion.
Though xAI's Grok LLM already matches OpenAI's top models, Colossus 2 would greatly increase their capabilities. With this massive computing power, xAI could become a serious rival to OpenAI's leading position in artificial intelligence.
xAI recently bought the X platform in an all-stock deal that valued xAI at $80 billion and X at $33 billion, with $12 billion in debt. Musk paid $44 billion for X back in 2022 and has fixed its money problems since then. The platform generated $1.2 billion in adjusted EBITDA during 2024.
The company already makes around $1 billion in revenue yearly, surprising many investors who expected little income this year. xAI has started work on Colossus 2, its next training supercluster. This system will house up to 1 million NVIDIA GPUs and cost between $35 and $ 40 billion.
Though xAI's Grok LLM already matches OpenAI's top models, Colossus 2 would greatly increase their capabilities. With this massive computing power, xAI could become a serious rival to OpenAI's leading position in artificial intelligence.
