A potentially transformative partnership is making headlines in the high-stakes technology sector. Nvidia (NVDA, Financial), the semiconductor giant, is reportedly in discussions about investing in Elon Musk’s AI venture, xAI. If confirmed, this development, as reported by the New York Post and based on insights from an insider familiar with the matter, could significantly alter the industry landscape
Through XAI, Elon Musk has entered a new field and has already found its place among market players with Grok, a large language model functioning on X social media. Although it started rather late in the race and even started behind industry leaders such as OpenAI’s ChatGPT, Grok was developed and deployed quickly.
Nvidia has not announced these investment talks, but its CEO, Jensen Huang, has endorsed Musk on social media platforms. During an interview around this period, Huang very much appreciated what the xAI team has accomplished, particularly the fact that the team established a supercomputer cluster of 100,000 H200 Blackwell GPUs within only 19 days. As he emphasized, such a system usually takes four years from conceptualization to implementation.
Morgan Stanley has been discussing xAI as an investment. In the last month, articles in The Wall Street Journal and The Information discussed xAI raising billions at valuations of over $40 billion. The rounds are believed to include mega-firms such as Sequoia Capital, Andreessen Horowitz, Vy Capital, and Value Equity Partners, which previously invested in the company.
That is why the possible cooperation of Nvidia and Musk can be called a technological breakthrough in the development of AI in the tech world. Such players joining forces can alter the industry’s competitive a
This article first appeared on GuruFocus.
Add Comment