Elon Musk’s artificial intelligence company, xAI, author of Grokhas completed its third round of financing. Among the usual investment companies, two draw powerful attention: Nvidia y AMD. Why have they become Grok investors?
Elon Musk’s xAI company held a funding round last May. It has since built the supercomputer Colossus, to train Grok, and launched Grok 2, which debuts the image-generative AI, Aurora.
In this third round of financing, called Series C, xAI has raised $6 billion from 97 investors. If at the beginning of the year it was valued at 24 billion dollars, today it is worth 40 billion.
Nvidia and AMD invest millions in Grok
To be able to participate in Series C, there were a series of conditions. The minimum investment was $77,593, and you had to previously have participated in the purchase of Twitter, in 2022, according to TechSpot. So Nvidia and AMD also supposedly helped Elon Musk buy Twitter.
Among the investors in this third round are the typical investment companies that put money where there are business prospects, such as A16Z, Blackrock, Kingdom Holdings, Lightspeed, MGX, Morgan Stanley, QIA, Sequoia Capital, Valor Equity Partners and Vy Capital.
But the presence on the list of two technology companies, such as Nvidia or AMD, is striking. Why have you invested in xAI?
In the case of Nvidia, it is very clear. The Colossus supercomputer uses 100,000 chips of artificial intelligence of the model H100 from Nvidiaand each one is worth $30,000. Elon Musk is going to use part of this financing round to buy another 100,000 GPUs from Nvidia, to double the power of Colossus. So Nvidia is interested in investing, xIA is an important client.
In the case of AMD, at the moment Elon Musk does not use its AI chips, but it is obvious that Lisa Su’s company seeks some type of agreement with xAI.
Hardware companies are interested in competition among their customersand that language model creators do well, in order to sell more AI chips. That is why it is logical that they invest in them, to support their development.
The company of artificial intelligence from Elon Musk, xAI, receives another investment of 6 billion dollarsthrough 97 investors, including Nvidia and AMD. There is still a long way to go for Grok to reach the level of AIs from OpenAI and Google.
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Tags: Artificial intelligence, Elon Musk