The majority of the funds are expected to be used to buy graphics processing units (GPUs), which are essential for running large language models.
The company is currently valued at $200 billion. Its main competitor, Anthropic, was valued at $183 billion in a recent funding round, while OpenAI has a valuation of $500 billion.
In September, Musk posted on the social media platform X stating that xAI is not currently seeking additional capital.
source: cnbc.com
