The money will be used to acquire 100,000 Nvidia chips, per sources familiar with the situation. Tesla's Full Self Driving is expected to rely on the new Memphis supercomputer.

Musk's AI startup, which he announced in July 2023, seeks to "understand the true nature of the universe," according to its website. Last November, xAI released a chatbot called Grok, which the company said was modeled after "The Hitchhiker's Guide to the Galaxy." The chatbot debuted with two months of training and had real-time knowledge of the internet, the company claimed at the time.