Elon Musk’s artificial intelligence (AI) startup xAI has accomplished large-scale financing to expand the world’s largest data center. Because the second large-scale funding this 12 months, as many as 97 corporations participated on this investment.
Bloomberg reported on the fifth (local time) that xAI had secured recent capital of $6 billion (roughly 8.5 trillion won). It was reported that this investment had already closed last month, but no separate announcement was made.
This time, xAI was officially confirmed through data submitted to the U.S. Securities and Exchange Commission (SEC).
In keeping with this, this funding was raised from 97 investors, and the minimum investment amount was $77,593 (about 110 million won). The list of investors was not disclosed, and no information on corporate value or profits was included.
In keeping with the Wall Street Journal, xAI’s corporate value exceeded $50 billion (roughly 70 trillion won) after funding, and famous investors corresponding to Qatar’s sovereign wealth fund, Valor Equity Partners, Sequoia Capital, and Andreessen Horowitz participated.
Particularly, the minimum investment amount is comparable to Open AI. When OpenAI attracted $6.6 billion in investment last October, so many investors flocked that it set a minimum investment limit of $250 million. Nevertheless, xAI has attracted as many investors as possible whatever the amount.
Also, in response to sources, only those that had previously invested in xAI could take part in this round. Investors who supported Musk’s acquisition of Twitter were reportedly allocated as much as 25% of xAI shares.
Because of this, xAI has raised a complete of $12 billion (roughly 17 trillion won) this 12 months alone, including $6 billion in May last 12 months.
Particularly, this funding is taken into account a vital step to expand the information center ‘Colossus’ positioned in Memphis, Tennessee by 10 times. This facility, which currently has about 100,000 GPUs, is scheduled to be expanded to 1 million, and this investment may also be used to expand the ability.
Nevertheless, the conclusion is that as a way to expand the variety of GPUs to 1 million, this level of investment have to be attracted over the subsequent few years.
Reporter Park Chan cpark@aitimes.com
