Elon Musk’s (54) AI company xAI has raised $20 billion (€17.1 billion) in fresh money. The chip manufacturer is among the donors Nvidia and the Emirate of Qatar, as xAI announced. As do other developers artificial intelligence
xAI needs tens of billions of dollars to expand data centers – mainly with AI chips from Nvidia. Nvidia shares recorded slight losses at the close of trading on Tuesday.
The tech entrepreneur’s company did not provide any information about the terms of the cash injection. According to information from the Bloomberg news agency, the deal was worked on for months – and xAI planned to take on around $12.5 billion of the amount as debt. Nvidia therefore planned to invest up to two billion dollars. Such circular deals, in which Nvidia invests in companies that in turn buy the company’s chip systems, are currently typical of the AI business.
According to its own statements, xAI wants to use the new funds to expand the infrastructure, accelerate the development and use of artificial intelligence products and finance research.
Hitler praise songs and pictures of minors
The AI company develops, among other things, the AI software Grok, which recently caused the next scandal. In response to user requests, Grok generated revealing images of, among others, minors. This was then explained as weaknesses in security precautions. In the summer, Grok had already shocked people with his praise for Adolf Hitler.
Musk’s company xAI, which has now also incorporated the online platform Musk wants artificial intelligence for this too Tesla, the car manufacturer he runs used in humanoid robots, among other things.