Musk’s xAI in talks to raise funding valuing it at $40B, WSJ reports

Elon Musk’s xAI is in talks with investors for a funding round that would value it around $40B, The Wall Street Journal’s Berber Jin and Meghan Bobrowsky report, citing people familiar with matter. xAI hopes to raise several billion dollars in the new funding round, one of the knowledgeable people said. The cash raised would be added to the $40B valuation. Silicon Valley’s biggest AI startups are raising cash at breakneck speed to fund the intensive computing power needed to develop and run their technology. They are competing not just with each other, but with huge public companies like Google (GOOGL) and Meta Platforms (META) that are pouring profits from their existing businesses into AI, the authors note. Musk said Monday that xAI is planning to grow the Memphis data center from 100,000 graphic processing units, or GPUs, to 200,000. Nvidia (NVDA) CEO Jensen Huang has praised the speed in which xAI built its Memphis data center, which he described in a recent podcast as “easily the fastest supercomputer on the planet.”