xAI's $6B AGI Supercomputer Mission

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Manual Overview - Google continues to manually remove AI Overviews that offer misinformation on specific searches as they emerge.

Nuclear AI - Sam Altman-backed nuclear startup Oklo signed a contract to supply 100MW to power Hyperscale Wyoming’s AI data center.

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THE HOTTEST THING IN TECH
xAI’s $6B AGI Supercomputer Mission

Elon Musk let slip on Twitter that he predicts Artificial General Intelligence (AGI) will be reached by ‘next year’ in response to a post from Google’s Logan Kilpatrick. He also just raised one of the biggest AI funding rounds ever, with $6B for xAI, and announced plans for a new AI supercomputer. Does he know something we don’t? Sure, Musk has a history of failing to meet Tesla delivery deadlines, but it seems xAI is going all-in on reaching AGI before rivals OpenAI and Google’s DeepMind.

$24 Billion Valuation!

xAI just announced it has raised a $6B Series B funding round from Sequoia, Valor, Lightspeed, and Andreessen Horowitz, at a huge pre-money valuation of $18B. Still, compared to OpenAI’s $86B valuation, there is plenty of upside for xAI. The company is led by former DeepMind, Microsoft, and Tesla execs, and will use their new funds to bring products like Grok 2.0 to market, build advanced AI infrastructure, and accelerate R&D.

‘Gigafactory of Compute’

To further this infrastructure mission, Musk also announced plans for a massive xAI ‘Gigafactory of Compute’ supercomputer with 100,000 Nvidia H100 GPUs. This would be at least 4x larger than the biggest AI clusters currently, supercharging the compute power of its products like the Grok 2.0 chatbot currently in training. Musk aims to have the supercomputer operational by Fall 2025. Oracle is seen as a potential partner with news the companies are negotiating a $10B multi-year cloud server lease deal.

xAI’s ’Work Optional’ OpenSource Vision

xAI’s vision to "connect the digital and physical worlds" and integrate with Musk's other companies hints at the scale Musk is working on. Integrating Tesla’s Robotaxi and Optimus home robots, the X ‘Everything App’ with banking, calling, social media, betting, Neuralink, SpaceX and more, xAI could easily become the most utilised AI company globally. Musk also said last week that the rise of AI will make all jobs ‘optional’, with the combination of AI and robots providing ‘any goods and services you want’.

And for the Musk naysayers, xAI is shaping up as far more “open” and transparent than OpenAI or even Meta. xAI released an open-source version of Grok earlier this year. On Sunday, Musk doubled down on this mission in a Q&A, with a commitment to always releasing an AI model that beats the best open-source model to benefit the OS AI community.

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1. Multilingual Messaging Portal - Sydney, AU - Global, AWS-backed SaaS platform for businesses to communicate with clients without language barriers. $300k secured, seeking $650k for U.S. expansion. (Series A)

2. AI Agent Employees - New York - Sophisticated workflow automation for businesses, by a previously-exited founder. Building towards fully autonomous organizations. Backed by Tribe & Kenetic, rolling out to extensive waitlist.

3. Outbound B2B Campaign AI Co-Pilot - Lexington, MA - Turn any CRM into an AI optimized sales agent for personalized customer campaigns. Founder previous exit to PE. Notable Angel on board. Top Hubspot App. Post revenue. (Seed)

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DEALS WE’RE WATCHING
Closed Deals:

SaaS ID Management - San Francisco software startup Lumos raised a $35M Series B led by Scale VPs with support from a16z, Harpoon Ventures, & Neo.

Actionable Medical Insights - New York AI data startup Atropos Health raised a $33M Series B led by Valtruis, with Breyer, Emerson Collective, and Presidio chipping in.

Deals to Watch:

SpaceX - Elon Musk's space company eyes a June tender offer valuing it at $200B giving employees and insiders an option to dilute their holdings.

Multi-billion Euro - Amazon's AWS is discussing major investment in Italy to expand its data center operations and cloud offerings in Europe.