Elon Musk, the CEO of Tesla, is accelerating the construction of data centers for artificial intelligence (AI) technology development while seeking additional funding. The AI startup xAI, led by Musk, is quickly depleting its funds and plans to raise an additional $12 billion (about 16.6 trillion won), according to a report by The Wall Street Journal (WSJ) on the 22nd (local time).
Unlike competitors who rent data centers from existing cloud computing companies, xAI is purchasing large-scale AI chips to build its own data centers, which is accelerating the depletion of funds. This funding is expected to be used for the construction of a new data center to train and operate the AI chatbot "Groq," with investment firm Valor Equity Partners stepping in as a major investor.
Previously, xAI raised $5 billion in funding through Morgan Stanley, and Musk's SpaceX also invested $2 billion in xAI. However, as xAI's funding is progressing rapidly, financial circles expect it to deplete $13 billion in funds within this year. Consequently, CEO Musk seems to be gathering additional funds with the goal of constructing a second data center.