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It’s crazy that Elon Musk has raised another $6bn for his OpenAI competitor in just 6 months 🙏🙏 But, what’s crazier is that no one’s asking what that will be used for. And that is the real deal! Let’s understand in depth, like no body will tell you! .. In May, Elon Musk’s xAI had raised $6bn at a pre-money valuation of $18bn. Now, 6 months later, it has raised another $6bn at a post-money valuation of $46bn. -> Much of this money pile will go towards further scaling up the world’s biggest AI supercomputer (COLOSSUS) which xAI operationalised in Memphis (United States) just months ago -> It already has over a lakh of Nvidia’s best-in-class Hopper GPUs. And work is already underway to double capacity, which needs more money But, as per the buzz in the markets, the overall goal is 10x capacity! .. I mean, this would be an insanely big capacity! Think this way. Colossus already consumes 150MW of power. And at 10x capacity, it would be equivalent to a data centre which consumes double the total amount of energy that all of India’s data centres consume today 🙏🙏 It’s mind-bogglingly huge! .. But, to build such a facility takes a lot of time for the following three reasons. 1> It requires a huge amount of contiguous land to be acquired from all sorts of land owners - Govt, individuals, companies, NGOs etc 2> And it has to get the Govt approval to source such big amount of electricity - so that locals and existing commercial and industrial establishments don’t face power shortage 3> And most important - it has to build the infra! The cement, steel, and aluminium all have to be put into shape for floors and ceilings to be erected .. Good thing is, much of this has been sorted. -> To speed things up, Elon acquired a defunct 550-acre-big factory built by Swedish electronics giant Electrolux in 2012, which it shut down in 2022. It’s in that factory complex where Colossus has been built, and is being expanded -> And as soon as Elon gets the Govt nod for uninterrupted electricity supply from the grid, he would be set to go all in with that 10x capacity expansion. And with Trump as President, that is unlikely to face any hurdles Thus, all that Elon now needs is money to get the ball rolling at full steam. Thus, the $6bn fundraise at $46bn post-money valuation.