Chipmaking giant Nvidia in talks with Elon Musk over investing in xAI: source
Chipmaking giant Nvidia is in talks with Elon Musk about investing in his fast-growing artificial intelligence startup xAI, a source close to the situation said.
Chipmaking giant Nvidia is in talks with Elon Musk about investing in his fast-growing artificial intelligence startup xAI, a source close to the situation said.
XAI — which powers the snarky Grok chatbot on Musk’s X social network — is in talks with some investors about raising several billion dollars at a roughly $40 billion valuation, the WSJ reported this week.
The Information reported he was talking to strategic investors — meaning tech companies as opposed to investment firms — but didn’t offer any names.
Venture firms including Sequoia Capital, Andreessen Horowitz and Vy Capital have been included in the latest funding talks, the tech news site reported.
Nvidia — which under CEO Jensen Huang last week surpassed Apple to become the world’s most valuable company with a market capitalization of more than $3.5 trillion — declined to comment when contacted by The Post.
The company had strongly denied similar rumors in the spring.
Musk is expecting in January to hold a major new fund-raising round that could value xAI at as much as $75 billion, two sources said.
It’s not unusual for chipmakers like Nvidia to co-invest with their customers on projects, according to industry insiders.
One Nvidia analyst who asked not to be named said xAI’s competitors would still buy Nvidia’s chips even if it invests in xAI.
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