Reports suggest Nvidia may invest in Elon Musk's xAI to advance AI innovation.

Elon Musk's AI venture xAI is reportedly in talks with Nvidia for a substantial investment that could accelerate the development of its large language model, Grok. Sources suggest this move might significantly impact the rapidly evolving AI sector.

Nvidia and Musk's xAI: A Potential Partnership in the Works

According to a recent story, semiconductor giant Nvidia is reportedly in discussions with Elon Musk over a possible investment in xAI. The New York Post was the first to reveal the purported investment, citing an anonymous source that was supposedly informed about the situation.

Social media platform X is now using Grok, a large language model (LLM) developed by Elon Musk's artificial intelligence business. Grok has grown and developed rapidly, despite entering the market later than rivals like OpenAI's ChatGPT.

Grok's Swift Growth Puts xAI in the Spotlight

Nvidia has allegedly chosen not to comment on the rumored investment in xAI, but Jensen Huang, CEO of Nvidia, has shown strong support for Musk's AI business, Teslarati reports. The xAI team assembled a cluster of 100,000 H200 Blackwell GPUs in a mere 19 days, according to an interview given by Huang in October.

According to Huang, the typical timeframe for such a project, beginning with the ideation phase and ending with the finished product, is four years. "As far as I know, there's only one person in the world who could do that; Elon is singular in his understanding of engineering and construction and large systems and marshaling resources; it's just unbelievable," Huang remarked.

Investors Show Growing Interest in Musk's xAI

Numerous reports have surfaced regarding investments in xAI. Several billion dollars, at a valuation of around $40 billion, were allegedly being discussed by Musk's AI business with certain investors in October, according to a report in The Wall Street Journal.

According to The Information, Musk's AI business has also considered soliciting $5 billion from investors, valuing it at around $45 billion.

Top Venture Capital Firms Join xAI's Funding Round

Sequoia Capital, Andreessen Horowitz, and Vy Capital are among the firms mentioned in The Information's story as participating in xAI's financing round. According to the magazine, Valor Equity Partners is allegedly back to invest in the AI business.