Key TakeawaysAs per inside sources, Elon Musks AI company xAI has managed to secure $6 billion in funding.The bigger chunk of the funding, $5 billion, comes from Middle Eastern sovereign funds whereas the rest of the $1 billion came from other investors.This money will be used to purchase 100,000 Nvidia chips that will power the upcoming line of Teslas Full self-driving cars.Elon Musks AI company xAi has managed to raise $6 billion in funding. This round of funding will increase the valuation of the company to $50 billion, more than doubling the valuation of $24 billion in its last round of funding in May.As per inside sources, the funding is coming in two parts. $5 billion will be coming from sovereign funds from the Middle East and the remaining $1 billion will be coming from other investors.Some of these investors are new and the rest are simply renewing their funding. All the deals are expected to close by next week.As per sources close to the company, this money will be used to purchase 100,000 Nvidia chips. These chips will power the new Memphis supercomputer which in turn will power Teslas upcoming line of Full Self Driving cars.The Trajectory of xAIs JourneyxAI was launched in July 2023 and in just a little over a year, it has made significant progress.It started with the release of an AI-powered chatbot called GrokAI to compete with leading industry players such as ChatGPT and Gemini. After its success, two newer versions Grok AI 2 and GrokAI Mini were also released shortly after, with the added feature of image generation.Up until now, GrokAI has only been available to paid users. However, as per recent reports, the company is also testing a free version that will be available to all users.And now comes the biggest news the xAI Colossus, the worlds largest AI supercomputer, received approval from the Tennessee Valley Authority in early November. It will now get 150mw of power from the states grid (previously it was only getting 8mw), allowing it to train GrokAIs family of large language models for efficiency.Such a huge power demand has naturally raised concerns from local activists. However, experts estimated that it actually requires at least 155mw to run the 100,000 GPUs that are powering the system. So Musks demand for 150 is actually quite conservative.Add Techreport to Your Google News Feed Get the latest updates, trends, and insights delivered straight to your fingertips. Subscribe now! Subscribe now Krishi is an eager Tech Journalist and content writer for both B2B and B2C, with a focus on making the process of purchasing software easier for businesses and enhancing their online presence and SEO.Krishi has a special skill set in writing about technology news, creating educational content on customer relationship management (CRM) software, and recommending project management tools that can help small businesses increase their revenue.Alongside his writing and blogging work, Krishi's other hobbies include studying the financial markets and cricket. View all articles by Krishi Chowdhary Our editorial processThe Tech Reporteditorial policyis centered on providing helpful, accurate content that offers real value to our readers. We only work with experienced writers who have specific knowledge in the topics they cover, including latest developments in technology, online privacy, cryptocurrencies, software, and more. Our editorial policy ensures that each topic is researched and curated by our in-house editors. We maintain rigorous journalistic standards, and every article is 100% written byreal authors.