Elon Musk's Dominance: How He Will Increase His Fortune with xAI

Wednesday - May 29 2024, 12:45 UTC - 5 months ago

Elon Musk's investment in xAI is set to increase his fortune by $100 billion next year. The artificial intelligence startup has made major strides over the past year, with its latest model boasting advanced image understanding capabilities. With plans to build a 100,000 Nvidia H200 data center, xAI is expected to surpass OpenAI and become a major competitor in the AI industry.

Elon Musk, the renowned entrepreneur and CEO of Tesla and SpaceX, has once again proven his dominance in the tech industry. With his latest investment in the artificial intelligence startup xAI, Musk's fortune is expected to increase by $100 billion in just one year.

Founded in July 2023, xAI has been making major strides in the AI world. The release of Grok-1 on X in November garnered significant attention and was soon followed by the announcement of the improved Grok-1.5 model with long context capability. Most recently, xAI has launched Grok-1.5V, which boasts advanced image understanding capabilities. With the open-source release of Grok-1, the company has also opened doors for advancements in various applications, optimizations, and extensions of the model.

The latest round of funding has valued xAI at a whopping $24 billion, with Elon Musk owning over half of the company. With his portion worth over $13 billion, it's safe to say that Musk's investment in xAI has already paid off tremendously.

But the company is not stopping there. With the funds from the latest round, xAI plans to take its first products to market, build advanced infrastructure, and accelerate research and development for future technologies. One of the most ambitious plans is to build a compute cluster that will be four times more powerful than the current largest AI data center in existence. This means xAI is aiming to build a 100,000 Nvidia H200 data center, which is four times more powerful than the current industry leader.

According to experts, it will take until Q1 2025 for Nvidia to produce and supply the new B200 chips, which will power xAI's compute cluster. But once it's ready, xAI is expected to make significant progress, with its AI surpassing OpenAI's GPT-5 model after the release of Grok 3. This will immensely increase the company's value to around $100 billion, making it a major competitor to OpenAI. And with the development of Grok 4 or 5, which will utilize the 100,000 B200 chips, xAI could potentially surpass OpenAI in terms of performance, making it worth an estimated $200 billion.

With Elon Musk's shrewd investments and xAI's rapid progress, it's clear that the company is on track to revolutionize the AI industry. And as xAI's value continues to soar, so will Musk's fortune, making him one of the most powerful figures in the tech world.