Elon Musk's xAI is seeking to raise up to $6 billion to purchase 100,000 Nvidia chips for Memphis data center.

• According to CNBC's David Faber, Elon Musk's artificial intelligence company xAI is seeking to raise up to $6 billion at a valuation of $50 billion.
• The upcoming funding, expected to close early next week, is a combination of $5 billion from sovereign funds in the Middle East and $1 billion from other investors, according to sources.
• The money will likely be used to acquire 100,000 Nvidia chips.

According to CNBC's David Faber, Elon Musk's artificial intelligence company xAI is seeking to raise up to $6 billion at a valuation of $50 billion.

Sources informed Faber that the upcoming funding, expected to close early next week, is a mix of $5 billion from sovereign funds in the Middle East and $1 billion from other investors, some of whom may wish to increase their investments.

According to sources, the money will be used to purchase 100,000 chips for Full Self Driving, which is expected to utilize the new Memphis supercomputer.

In July 2023, Musk announced his AI startup that aims to comprehend the universe's true nature, as stated on its website. In November 2023, X.AI launched Grok, a chatbot inspired by "The Hitchhiker's Guide to the Galaxy." Grok debuted with two months of training and boasted real-time internet knowledge, according to the company at the time.

X.AI, with Grok, aims to compete directly with OpenAI, which Musk helped start, as well as Google's Bard technology and Anthropic's Claude chatbot.

Elon Musk has been working closely with the new administration on its approach to AI and technology, as part of Trump's inner circle in recent weeks.

Trump intends to abolish Biden's AI executive order, as per his campaign platform, arguing that it stifles AI innovation and promotes left-wing ideals, while Republicans advocate for AI development that prioritizes free speech and human prosperity.