Chipmaker Nvidia has reportedly invested up to $2 billion in xAI, the artificial intelligence company founded by Elon Musk, as part of a massive $20 billion funding round aimed at strengthening xAI’s position in the global AI race.
According to industry sources, this funding could raise xAI’s valuation to over $80 billion, making it one of the most valuable AI startups globally, just behind OpenAI and Anthropic.
Nvidia’s involvement is seen as strategic, given its dominance in the AI chip market. The investment will likely ensure xAI gets priority access to Nvidia’s H100 and upcoming Blackwell GPUs, which are crucial for training large AI models.
Elon Musk founded xAI in 2023 to develop safe and transparent artificial intelligence. The company’s AI chatbot, Grok, is already integrated into Musk’s social platform X (formerly Twitter), offering users a more interactive experience.
The fresh funds are expected to be used for AI infrastructure expansion, hiring top AI researchers, and developing more advanced versions of Grok.
This move also reflects Nvidia’s broader strategy to support leading AI startups and maintain its strong position in the rapidly growing AI ecosystem.
With this investment, xAI is set to accelerate its development and compete more closely with AI leaders like OpenAI, Google DeepMind, and Anthropic.
Summary Table
| Detail | Information |
|---|---|
| Company | xAI (Elon Musk’s artificial intelligence company) |
| Investor | Nvidia Corporation |
| Investment Amount | Up to $2 billion |
| Total Funding Round | Around $20 billion |
| Valuation Target | Estimated over $80 billion |
| Key Purpose | Accelerate AI model development and infrastructure expansion |
| Other Investors | Sequoia Capital, Andreessen Horowitz, Fidelity, and others |
| Founded By | Elon Musk |
| Founded In | 2023 |
| Headquarters | Estimated at over $80 billion |
