Elon Musk's AI company, xAI, is negotiating to raise $15 billion at a valuation of $230 billion, a significant increase from its previous $113 billion valuation. The company is rapidly spending to enhance its Grok chatbot and build infrastructure, continuing a trend of heavy cash burn among AI startups.

Elon Musk's AI startup xAI is set to finalize a $15 billion funding round next month, valuing the company at $230 billion. The funds will primarily support graphics processing units for large language models. The startup has faced criticism for its Grok chatbot due to hate speech issues.

Elon Musk's Grokipedia, a competitor to Wikipedia powered by xAI's Grok, launched but quickly crashed, leaving users unable to access it. The site, which aims to provide a right-leaning perspective on various topics, managed to go live later the same day with nearly 900,000 articles, although it faced criticism for its framing of certain subjects, including entries on political figures like Joe Biden.

Elon Musk has dedicated himself to his A.I. startup xAI, aiming to rival competitors like OpenAI while presenting ambitious plans for the company. His intensified focus on xAI raises concerns about his involvement in other ventures, particularly as Tesla pushes for a significant pay package to incentivize him.

Elon Musk announced that X.AI is aiming to deploy 50 million AI GPUs equivalent to the H100 within the next five years. Currently, over 230,000 GPUs, including 30,000 GB200s, are reportedly operational for training the company's AI model, Grok. This ambitious plan reflects Musk's commitment to advancing AI technology significantly.