xAI has raised $5 billion, doubling its valuation to $50 billion, as reported by the Wall Street Journal.
This new funding brings xAI's total capital raised this year to $11 billion, following a previous $6 billion round in the spring when the company was valued at $24 billion.
The funds will be used to acquire an additional 100,000 Nvidia chips to enhance the training of its AI models, with the company having already launched the Colossus 100k H100 training cluster, touted as the most powerful AI training system globally.
Nvidia's H200 GPU, designed to accelerate generative AI and large language models, plays a crucial role in xAI's infrastructure, with the Colossus system being recognized as the world's largest GPU supercomputer.
Their Grok-2 Beta, released in August 2024, represented a leap in AI capabilities, featuring advanced reasoning, coding, and chat functionalities. Available in two variants—Grok-2 and the compact Grok-2 mini—these models have already made their mark by outperforming competitors like Claude 3.5 Sonnet and GPT-4 Turbo in several benchmarks at the time, including graduate-level science, math, and vision-based tasks.
Since its release, Grok-2 has been accessible to users on the X platform, with Premium and Premium+ subscribers leveraging its real-time insights and enhanced interaction capabilities.
