American entrepreneur Elon Musk's xAI startup has raised $6 billion to buy NVIDIA accelerators to expand the computing power of its artificial intelligence (AI) supercomputer, CNBC reports.

Recall that xAI launched the Colossus AI cluster with 100,000 NVIDIA H100 accelerators in early September of this year. The platform uses Supermicro servers, All-Flash storage nodes, SuperNIC adapters and liquid cooling systems. The supercomputer is located in a huge data center near Memphis, Tennessee.

Of the $6 billion raised, $5 billion will come from sovereign wealth funds in the Middle East, and another $1 billion from other investors, whose names are not disclosed. At the same time, the startup’s market value will reach $50 billion. The Financial Times also reports that xAI will receive additional funds for development. According to the newspaper, it is about $5 billion, and the startup’s capitalization is $45 billion.

Musk previously spoke about his intention to double the work of Colossus and said that it is planned to purchase about 100,000 AB accelerators for this, including 50,000 NVIDIA H200s. Apparently, the startup will also use the funds raised to purchase other NVIDIA products, including Spectrum-X SN5600 switches and BlueField-3-based network cards.

Meanwhile, Memphis residents are expressing dissatisfaction with the development of the xAI AB complex. Activists accuse the startup of using generators at the data center site to worsen air quality in the area.