A recent report has alleged that chip giant Nvidia is in talks with Elon Musk about a potential investment in xAI. The alleged investment was reported initially by the New York Post, which cited a source reportedly familiar with the matter.
Elon Musk’s artificial intelligence startup is behind Grok, a large language model (LLM) that is currently deployed on social media platform X. While Grok came to market later than competitors like OpenAI’s ChatGPT, its growth and development have been very quick.
While Nvidia reportedly declined to comment about its alleged investment in xAI, its CEO, Jensen Huang, has been pretty supportive of Musk’s artificial intelligence startup. In an interview in October, Huang noted that the xAI team set up a supercomputer cluster featuring 100,000 H200 Blackwell GPUs in just 19 days.
Nvidia in talks with Elon Musk over investing in xAI, according to NYP pic.twitter.com/yk46J4gM4Y
— Dima Zeniuk (@DimaZeniuk) November 2, 2024
As per Huang, such a project would ordinarily take up to four years from its concept phase to its final output. “As far as I know, there’s only one person in the world who could do that; Elon is singular in his understanding of engineering and construction and large systems and marshaling resources; it’s just unbelievable,” Huang noted.
Reports about investments in xAI have been abounding. In October, a report from The Wall Street Journal claimed that Musk’s artificial intelligence startup was in talks with some investors about raising several billion dollars at a valuation of about $40 billion. A report from The Information also noted that Musk’s artificial intelligence startup has discussed raising $5 billion from investors at a valuation of about $45 billion.
In its report, The Information noted that xAI’s investment round would involve firms such as Sequoia Capital, Andreessen Horowitz, and Vy Capital. Valor Equity Partners is reportedly returning to invest in the artificial intelligence startup as well, the publication claimed.
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