🤖 Elon Musk’s xAI Raises $6 Billion for Supercomputer Expansion

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In today’s Daily Report:

• ⚙️Elon Musk’s xAI Raises $6 Billion for Supercomputer Expansion

• ⛽️New AI Scaling Law Fuels OpenAI o3’s Strong Performance

• 🕹️Niantic Labs Uses Pokémon GO Data to Build Spatial Intelligence

• 🛠Trending Tools

• 💰Funding Frontlines

• 💼Who’s Hiring?

Read Time: 3 minutes

🗞RECENT NEWS

XAI

⚙️Elon Musk’s xAI Raises $6 Billion for Supercomputer Expansion

Elon Musk’s xAI raised a $6 billion Series C Funding Round, valuing the company at over $40 billion.

Key Details:

• xAI focuses on building AI systems that accelerate human scientific discovery to advance “our collective understanding of the universe.”

• Investors in the Series C Funding Round include BlackRock, Sequoia Capital, and Andreessen Horowitz (a16z).

• The company recently launched “Colossus,” the world’s biggest AI Cluster powered by 100,000 NVIDIA H100 Tensor Core GPUs and 50,000 NVIDIA H200 Tensor Core GPUs. Now, xAI plans to add over 100,000 more Tensor Core GPUs to “Colossus.”

• An AI Cluster is a computer network that combines the power, storage, and memory of GPUs to train, develop, and deploy advanced AI models.

Why It’s Important:

• “Colossus” reduces compute constraints for the company’s developers, giving them a competitive edge in the AI race.

• xAI’s goal is to build bigger, better, and faster AI systems that turn sci-fi ideas into everyday tech.

🩺 PULSE CHECK

OPENAI

⛽️New AI Scaling Law Fuels OpenAI o3’s Strong Performance

OpenAI o3’s strong performance on the FrontierMath benchmark is proof that AI Scaling Progress hasn’t “hit a wall.”

Key Details:

• Earlier this year, developers at OpenAI and Anthropic reportedly struggled to build more advanced AI models because current AI Scaling Laws showed diminishing returns.

• The AI Scaling Laws claim that AI models will continue to improve as they’re given more data, more training, and more compute.

• However, as AI models grew larger and larger, the marginal gains in performance from the AI Scaling Laws diminished.

• In other words, adding more data, more training, and more compute wasn’t improving AI models as much as it used to.

• In response, OpenAI implemented Test-Time Scaling into OpenAI o3, which allocates more compute during AI Inference: everything that happens after you enter your prompt.

• It makes OpenAI o3 “think longer” to solve harder problems in math, coding, and science.

• For example, OpenAI o3 scored 25% on the FrontierMath benchmark, which no other AI model scored more than 2% on.

Why It’s Important:

• AI models don’t inherently understand the underlying concepts behind large amounts of data. They can’t explain why a particular formula works. However, OpenAI o3 seems to be changing this.

• “OpenAI o3 is evidence that AI progress will be faster in 2025 than in 2024,” said Anthropic Co-Founder Jack Clark in a blog post.

AI RESEARCH

🕹️Niantic Labs Uses Pokémon GO Data to Build Spatial Intelligence

When you look at a statue, bridge, or restaurant, it’s easy to imagine what it might look like from different angles, even if you haven’t seen it from every angle. Humans possess Spatial Understanding or the ability to understand the positions and relationships of objects. However, AI models struggle to imagine physical spaces from a new angle.

To solve this issue, Niantic Labs is developing a Large Geospatial Model (LGM) using Pokémon GO data to train AI models on Spatial Intelligence to perceive, comprehend, and interact with physical spaces as humans do.

Pokémon GO is a mobile game on your smartphone that leverages Augmented Reality (AR) to help you locate, capture, train, and battle virtual Pokémon. AR is an interactive experience that combines the real world with computer-generated content. Pokémon GO supplies vast amounts of data, including player-contributed scans of public real-world locations to help train LGMs.

LGMs can help create more realistic AR experiences. Imagine placing virtual objects in the real world that seamlessly integrate with physical spaces, accounting for shadows, reflections, and occlusions.

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🔮Browse our always Up-To-Date AI Tools Database.

💰FUNDING FRONTLINES

• Here’s a list of 49 American AI startups that’ve raised over $100M in 2024.

• Leap Financial raises a $3.5M Seed Round to pioneer the fusion of Fintech and AI.

• Anatomy secures a $19M Series A to automate financial operations for healthcare with real-time dashboards.

💼WHO’S HIRING?

• Adobe (San Francisco, CA): Data Scientist Intern, Summer 2025

• Hearst (San Francisco, CA): Data Reporting Intern, Summer 2025

• Cleric (San Francisco, CA): Software Engineering Intern, Summer 2025

• NVIDIA (Santa Clara, CA): Data Center Sustainability Intern, Summer 2025

• Microsoft (Mountain View, CA): Research Intern, Cloud Competitive Intelligence, Summer 2025

🤖PROMPT OF THE DAY

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📒FINAL NOTE

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