Elon Musk raises $6 billion for xAI’s Memphis data center; will purchase 100,000 Nvidia chips to boost Tesla’s full self-driving capabilities

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  • Elon Musk seeks $6 billion for xAI’s Memphis data center
  • Funding to purchase 100,000 Nvidia chips for AI projects
  • Data center will power Tesla’s Full Self-Driving capabilities

Elon Musk knows that staying competitive in the AI space requires deep pockets – back in February 2024, the world’s richest man said Tesla would spend “over a billion dollars” on Nvidia’s H100 and AMD’s Instinct MI300 hardware, adding, “The table stakes for being competitive in AI are at least several billion dollars per year at this point.”

More recently, the controversial billionaire gave us a tour inside the massive AI supercluster, dubbed Cortex, being used by X (formerly Twitter) and followed that up with news that Colossus, a new 100k H100 training cluster for Musk’s artificial intelligence company xAI, is now up and running.



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