Elon Musk’s xAI raises $6 billion to compete with ChatGPT and build AI supercomputer

Musk claims xAI is now valued at $18 billion and aims to build its own AI supercomputer by late 2025.

Founded last summer, xAI has already launched Grok, an edgier version of OpenAI’s ChatGPT, currently available to X Premium subscribers on the platform formerly known as Twitter. Major investors in this round include Andreessen Horowitz, Sequoia Capital, and Saudi Arabian Prince Al Waleed bin Talal.

Musk’s plans for xAI include building a supercomputer by late 2025, powered by 100,000 Nvidia H100 chips, to support an upgraded version of Grok. The need for high-end hardware such as Nvidia's Blackwell B200 AI graphics cards, which cost between $30,000 and $40,000 each, underscores the high financial demands of AI development.