Musk competes with his xAI computing power! It is reported that it is raising a new round of financing, with a target of US$6 billion

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Computing power is an endless race, and x,Acompany founded by the world's richest man Elon Musk, is reportedly planning a new round of large-scale fundraising.

According to CNBC, citing multiple sources familiar with the matter, xAI is actively negotiating with potential investors, seeking to raise approximately $6 billion in funding.

The potential financing scale is substantial, with sources revealing that xAI aims to set the company's val-uation18Post-uation) in this funding round.

CNBC reported that the primary driver forth seeking this massive funding is to accelerate the construction of the required company large infrastructure. This includes purchasing large quantities of high-end AI chips and and building clusters of supercomputers for training and running advanced AI models, such as xAI's current chatbot Grok and its subsequent versions, which require more supercomputer clusters.

The Computing Power Race Never Stops

Currently, having powerful computing capabilities in the AI industry has become a key competitive factor. Training the most advanced AI models requires astronomical levels of computational resources, which has led to extremely high infrastructure costs (chips). As a relativelyively late entrant, xAI must quickly expand its computing power scale to effectively compete with other AI leaders like OpenAI, Google DeepMind, and Anthropic in terms of technological R&D speed and model performance.

Sources revealed that xAI is discussing with investment investment institutions globally. Considering Musk's past fundraising record and the potential synergy between xAI and his social platform X, this funding round has attracted widespread market attention, and it isableusk can achieve a "connected" additive effect.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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