Elon Musk Boosts xAI Ambitions: AGI Goals, Space Data Centers, and $30B Funding in All-Hands Meeting
At a recent all-hands meeting at xAI’s San Francisco headquarters, Elon Musk projected confidence in the company’s future, telling employees that if xAI could survive the next two to three years, it would ultimately outpace its competitors. Several sources familiar with the gathering said Musk expressed optimism about the company’s trajectory, emphasizing that rapid scaling of computational power and data infrastructure would be critical to achieving superintelligence—AI that surpasses human cognitive abilities. Musk reiterated his belief that artificial general intelligence (AGI), which matches or exceeds human-level reasoning, could be achieved within a few years, possibly as early as 2026. This aligns with his earlier statement in November that Grok 5, the next major version of xAI’s AI model, had a 10% chance of reaching AGI. The model is expected to launch early next year. The CEO highlighted xAI’s financial advantage, noting the company could access $20 billion to $30 billion in annual funding. He also pointed to synergies with his other ventures—particularly Tesla and SpaceX—as a strategic edge. Tesla has already integrated Grok into its vehicles, and Musk said the company’s Optimus humanoid robot could one day operate data centers on Mars, a vision he discussed during the meeting. Musk also floated ambitious ideas about placing data centers in space, suggesting that Tesla’s Optimus robots could support such extraterrestrial infrastructure. While Google CEO Sundar Pichai and OpenAI CEO Sam Altman have previously acknowledged the theoretical potential of space-based data centers, Pichai described the idea as a “moonshot.” Musk, however, appeared to treat it as a viable long-term goal. Workers at the meeting described the atmosphere as energetic and upbeat. One insider called it “peppy,” reflecting a sense of momentum within the company. xAI has been rapidly expanding its infrastructure under the Colossus project, with Musk stating the company now operates around 200,000 GPUs and plans to scale to 1 million. Despite Musk’s high-profile presence, xAI remains a relative newcomer in the AGI race, which is currently dominated by OpenAI, Google, and Anthropic. Yet the company has made rapid progress, releasing updated versions of Grok in quick succession. During the all-hands, leaders showcased improvements to Grok Voice, the app tailored for Tesla owners, and the company’s AI agents. Enhancements included better predictive capabilities, improved voice recognition, and new video editing features. The AI race continues to intensify. OpenAI recently entered a state of emergency to accelerate development, while Google launched a new Gemini model in November. xAI’s ability to maintain pace will depend on its infrastructure growth, talent acquisition, and execution—challenges that remain significant even with Musk’s vision and resources. In response to a request for comment, xAI sent an automated message: “Legacy Media Lies.”
