Elon Musk announced his new company, XAI, which he said is aiming to understand the true nature of the universe.
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Xai, an artificial intelligence startup Elon MuskMorgan Stanley said that raised $10 billion in debt and equity.
Half of the payment was restricted through secured notes and term loans, while a $5 billion guarantee was secured through strategic equity investments, the bank said on Monday.
The funding gives Xai more firepower to build infrastructure and develop its Grok AI Chatbot as it looks to compete with Bittle Rival Openai, as well as many other players (including) Amazon– Anthropomorphism later.
Musk told CNBC in May XAI has installed 200,000 graphics processing units (GPUs) in its Colossus facility in Memphis, Tennessee. Colossus is Xai’s supercomputer, training company AI. Musk said at the time that his company would continue to buy chips from semiconductor giants Nvidia and AMD XAI is planning a one million-GPU facility outside Memphis.
“The proceeds will support Xai’s continuous development of state-of-the-art AI solutions, including one of the world’s largest data centers and one of its flagship Grok platforms,” Morgan Stanley said on the latest funding raised by the company.
Xai continues to release updates to Grok and reveals Grok 3 AI Model In February. Musk attempts to improve GROK usage by combining AI models with X social media platforms (formerly known as Twitter). March, Xai acquires X In a deal that estimates the site to $33 billion, AI companies have $80 billion. It is not clear whether the new equity increase has changed the valuation.
XAI cannot comment immediately.
Last year, Xai raised $6 billion at a valuation of $50 billion. CNBC Report.
Morgan Stanley said the latest debt issuance is “oversubscribed, including world-renowned debt investors.”
Competition among US AI startups is intensifying, with companies raising a lot of money to buy chips and build infrastructure.
Openai ended a $40 billion financing in March. This is worth $300 billion for ChatGpt developers. Its major investors include Microsoft and Japan’s SoftBank.
Anthropic, developer of Claude Chatbot, ends a round of funding in March Estimated the company to $61.5 billion. Then, the company received it Five-year $2.5 billion in revolving credit in May.
Musk called Grok the “big truth” AI, which is also a “strike back” to distinguish it from its competitors. But this is not without any controversy. Earlier this year, Grok responded to user queries and commented irrelevantly Controversial “white genocide” and South Africa topics.
Musk also clashed with AI leaders including Openai’s Sam Altman. Most notably, Musk claims that his co-founded Openai deviates from its original mission of developing AI to benefit humans as nonprofits, instead focusing on business success. In February, Musk joined a group of investors in a $97.4 billion bid to buy control of Openai. Ultraman quickly rejected the offer.
– CNBC’s Lora Kolodny and Jonathan Vanian contributed to the report.
