Elon Musk’s AI company, xAI, has revealed plans for a massive supercomputer called Colossus 2.
According to recent reports, xAI aims to raise up to $25 billion to fund this project.
Elon Musk’s New Multi-Billion Dollar AI Project
The new Colossus 2 is designed to eventually support up to 1 million NVIDIA GPUs. Development costs are estimated between $35-40 billion, making this one of the largest AI infrastructure investments to date.
During a conference call with investors, Musk hinted at an upcoming funding round that could value xAI between $150-200 billion. This represents a significant leap from its recent valuation of $80 billion when it acquired the social media platform X.
xAI’s Growing Success
Despite being a relatively new player in the AI field, xAI is already generating approximately $1 billion in annual revenue. The company’s Grok language model has been competing successfully with top models from industry leader OpenAI.
The Colossus 2 appears to be xAI’s strategy to challenge OpenAI’s dominance in the market. With this massive computing resource, xAI could significantly accelerate its AI research and development capabilities.
As the AI race continues to heat up between major tech companies, Musk’s xAI is positioning itself as a serious contender with investments in both cutting-edge models and the massive computing infrastructure needed to train them.