At least one big Silicon Valley venture capital firm is considering a $6 billion cash infusion for Elon Musk's xAI startup and its troubled chatbot, Grok., Musk is closing in on a first-round fundraising deal with potential investors including Sequoia Capital, which invested $800 million into Twitter when he bought it back in 2022.
The insiders did not specify how much Sequoia plans to commit or which other firms might be involved in the fundraising, but thenotes, would bring xAI's valuation up to $18 billion, which is not much less than that of Anthropic, another OpenAI rival created by exiles from the company that's valued at aroundthat training out Grok would require 100,000 of Nvidia's H100 data processing GPUs, which at $40,000 per chip are considered the gold standard in AI compute power.
If they were savvier, Sequoia and whoever else is planning to spend big on xAI would look at what the startup has actually put out so far, which has