xAI, Elon Musk’s artificial intelligence company that operates the X service and the Grok chatbot, is currently reportedly in the process of raising new investment funds totaling around $20 billion. Interestingly, NVIDIA is also reported to be investing in xAI, amounting to $2 billion.
This new investment is said to be formed under a new company, which will be responsible for obtaining NVIDIA processing, and xAI will subsequently lease the chips for a period of five years.
Recently, various western artificial intelligence companies have been seen facing challenges in obtaining processing and computing capacity for their respective artificial intelligence models. This has opened up a unique space for NVIDIA to continue expanding their market, and also invest in several related companies.
In addition to xAI, NVIDIA has previously announced investments in Intel, as well as having announced an investment of up to $100 billion in OpenAI.