Elon Musk's xAI Secures $6 Billion for AI Expansion

The funding will support a tenfold expansion of its Colossus supercomputer and intensify competition with OpenAI and other AI leaders.

xAI raised $6 billion in equity financing from 97 investors, bringing its total funding this year to $12 billion and valuing the company at over $50 billion.
The funds will enable a tenfold expansion of xAI's Colossus supercomputer in Memphis, Tennessee, increasing its capacity to over one million GPUs to enhance AI development.
Partners like Nvidia, Dell, and Supermicro are collaborating on the project, which aims to position Memphis as a key hub for AI innovation.
Elon Musk has escalated his legal battle with OpenAI, accusing it and Microsoft of anti-competitive practices, while criticizing OpenAI's shift to a for-profit model.
xAI's Grok chatbot and other AI initiatives are part of Musk's broader strategy to challenge AI leaders like OpenAI, Anthropic, and Google.