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Business Standard
2 hours ago
- Business
- Business Standard
Elon Musk's xAI seeks $12 billion more to expand AI infrastructure
Elon Musk is tapping every possible funding source to keep up in the intense artificial intelligence race. Just weeks after his AI company, xAI, secured $10 billion by selling shares and taking on debt, the firm is now aiming to raise as much as $12 billion more. The new funding is being arranged with the help of a long-time ally, according to a report by The Wall Street Journal. Valor Equity Partners, an investment firm founded by Antonio Gracias - known for his close relationship with Musk - is allegedly in talks with lenders to arrange the fresh capital. The money is expected to be used to buy a huge stockpile of Nvidia's advanced chips. These chips would then be leased to xAI for building a large-scale data centre, which would support the training of its AI chatbot, Grok. To compete with tech giants like Google, Microsoft and Meta, Musk is trying to gather as many financial resources as possible. Grok has not seen the same popularity as OpenAI's ChatGPT and recently faced backlash for sharing offensive and racist content on X. The company later apologised for the 'horrific behaviour'. Talks still underway One of the key sticking points is the size of the loan and the repayment timeline. Some lenders are pushing for repayment within three years and want to limit the total borrowed amount to reduce their risk. AI chips can lose value quickly as newer models emerge, and there are other risks like falling demand or xAI facing setbacks. Shifting resources within the Musk empire With xAI's finances already stretched, Musk has been using creative ways to raise money. SpaceX, another company he owns, recently invested $2 billion into xAI, essentially shifting funds from one Musk business to another. Additionally, when xAI borrowed $5 billion in June, it used Grok's intellectual property as part of the collateral, according to people aware of the deal. Since developing and training large AI models requires massive amounts of cash, xAI may have to raise even more in the near future. Unlike competitors such as OpenAI and Anthropic, which partner with cloud service providers to help cover costs, xAI has chosen to build and run its own infrastructure. High costs and limited revenue Cash is leaving xAI almost as fast as it's coming in. Financial documents shared with potential lenders earlier this year suggested that the firm was on track to spend about $13 billion in 2025. The startup is not currently profitable and generates minimal revenue. xAI is now looking at a more complex funding route, which involves leasing chips rather than buying them outright. While this could ease some immediate financial strain, it also creates long-term obligations. Investor confidence in Musk Despite the challenges, Musk's track record still inspires confidence among many investors. His success with rockets and electric vehicles gives some hope that xAI's unconventional path might pay off. Many backers believe Musk would step in to support xAI using other parts of his business empire, if necessary. The company built its first massive data centre in Memphis, Tennessee - called Colossus - in just 122 days. It originally held 100,000 Nvidia GPUs, making it one of the largest AI chip clusters globally. Just 92 days later, the centre doubled in size to 200,000 GPUs. 'That is like superhuman, and as far as I know there's only one person in the world who could do that,' said Nvidia CEO Jensen Huang in a podcast last year. 'Elon is singular in his understanding of engineering and construction and large systems and marshalling resources.' Plans for a second super-sized data centre xAI has plans to use one million chips for Grok. To finance its second, even larger data centre - Colossus 2 - it is once again turning to Valor. The firm has previously invested in Musk's companies like SpaceX, Tesla, The Boring Company, SolarCity and Neuralink. Valor and other private equity backers are expected to contribute their own funds to a financing structure that would then borrow billions more from private credit funds. The loan would be repaid with the fees xAI pays for using the chips. If the firm fails to make payments, lenders would have the right to seize the chips. Recent debt terms The $5 billion corporate debt issued by xAI recently included bonds and loans backed by assets like data centres, Nvidia chips and the Grok codebase. The bonds carry a steep yield of 12.5 per cent. If xAI defaults, lenders would have the option to rent out Colossus to other AI firms and could also claim rights to Grok, which is integrated into other Musk projects. Due to the terms of this financing, xAI can only borrow another $5 billion in corporate debt, excluding any chip lease arrangements.
NBC News
4 hours ago
- Politics
- NBC News
White House faces backlash after booting The Wall Street Journal from Scotland media coverage plans
WASHINGTON — The White House is facing backlash from press groups after booting The Wall Street Journal from a cohort of media outlets set to cover President Donald Trump's upcoming trip to Scotland. "This attempt by the White House to punish a media outlet whose coverage it does not like is deeply troubling, and it defies the First Amendment," said Weijia Jiang, the president of the White House Correspondents' Association, in a statement. White House press secretary Karoline Leavitt said on Monday that The Wall Street Journal would not be part of the group of media outlets set to travel with Trump overseas. The move comes after The Wall Street Journal reported that Trump in 2003 sent Jeffrey Epstein a birthday card with a drawing of a naked woman, calling Epstein a 'pal' and signing off saying, 'may every day be another wonderful secret.' "Due to the Wall Street Journal's fake and defamatory conduct, they will not be one of the thirteen outlets on board," Leavitt said in a statement, though she did not explicitly refer to the Journal's Epstein story. Shortly after the story was published, Trump filed a lawsuit seeking $10 billion in damages. The suit named The Wall Street Journal's parent company and publisher, two reporters and two media executives. Dow Jones, The Wall Street Journal's publisher, declined to comment on the outlet being kicked out of the pool. After Trump's lawsuit, a Dow Jones spokesperson defended The Wall Street Journal's reporting, saying, 'We have full confidence in the rigor and accuracy of our reporting, and will vigorously defend against any lawsuit.' Jiang urged the White House to reverse its decision, noting that the White House Correspondents' Association was ready to work with the administration on a resolution. "Government retaliation against news outlets based on the content of their reporting should concern all who value free speech and an independent media," she said. A spokesperson for The New York Times also condemned the White House's move, calling it "an attack on core constitutional principles underpinning free speech and a free press." "This is simple retribution by a president against a news organization for doing reporting that he doesn't like," the spokesperson said. "Such actions deprive Americans of information about how their government operates." Press pools have had a longstanding role in White House media coverage. Space at events with the president — such as in the Oval Office or on Air Force One — is limited, so media outlets take turns serving in the smaller press pool to provide information for the larger media cohort. Pool journalists shoot footage, ask questions and provide inside-the-room details for shared use. The Wall Street Journal has regularly been part of the White House pool as recently as last week, before their Epstein story broke. It is unclear whether the White House plans to continue barring the outlet from other pooled coverage events outside of the president's trip to Scotland. During prior administrations, the White House Correspondents' Association coordinated which outlets would take on pool roles at what time. Leavitt said in February that the White House would take over pool control, ending the precedent. The White House also sought to ban The Associated Press from media events, marking a sharp departure from prior administrations. Trump repeatedly criticized The Associated Press for referring to what the White House calls the "Gulf of America" as the "Gulf of Mexico." An appeals court ruled in June that Trump was allowed to block The Associated Press from some media events as litigation continues, which Leavitt pointed to in her statement on Monday. "As the appeals court confirmed, the Wall Street Journal or any other news outlet are not guaranteed special access to cover President Trump in the Oval Office, aboard Air Force One, and in his private workspaces," she said. The Epstein case has engulfed the administration in controversy and sparked rare criticism from Trump's own base. In recent weeks, a growing number of people — including some close Trump allies — are calling from the White House to release more files related to Epstein, who died in jail while he was waiting to be put on trial for federal sex trafficking charges. Attorney General Pam Bondi announced on Tuesday that Deputy Attorney General Todd Blanche was communicating with Ghislaine Maxwell's lawyer over whether she was willing to speak with Justice Department prosecutors. Maxwell is serving a 20-year prison sentence and was accused of grooming and recruiting girls for Epstein's sexual abuse. The Wall Street Journal reported that Trump's letter to Epstein was from 2003, before Epstein initially came under investigation in 2005. Trump told New York Magazine in 2002 that Epstein was a "terrific guy." Trump later distanced himself from Epstein, saying after the billionaire's 2019 arrest that the two had a falling out " a long time ago."
Daily Mirror
4 hours ago
- Entertainment
- Daily Mirror
Maria Sharapova's jaw-dropping £18.5m mansion goes up for sale with its own bowling alley
Maria Sharapova is looking to sell her incredible mansion in Manhattan Beach after living there for 13 years with her fiance Alexander Gilkes, and the property boasts a number of unusual features Maria Sharapova is reportedly selling her lavish mansion, which comes with its own built-in bowling alley and swimming pool. The former star, who won five Grand Slam titles during her impressive 19-year career, first made a name for herself when she won Wimbledon in 2004 at just 17 years old, defeating Serena Williams in the final. The 38-year-old is now engaged to British businessman Alexander Gilkes, and the pair are planning to leave Los Angeles for pastures new. They currently own an extraordinary property in Manhattan Beach, but they're looking to sell their mansion and make a tidy profit. The Wall Street Journal reports that Sharapova has put the five-bedroom property on the market for £18.5million ($24.995m), having purchased it for £3m ($4.1m) 13 years ago. Once the sale is complete, the couple plans to spend more time in Europe and with their family. In a YouTube video posted by Architectural Digest six years ago, the ex-tennis star took viewers on a detailed tour of the property. Custom-built in 2015 by KAA Design, the property offers stunning sea views and exceptional amenities. It features two built-in bowling lanes and an adjacent media room. This makes the bowling area a perfect space for entertaining all ages, while being able to keep an eye on the scoreboard as guests knock down pins at their leisure. Outside, there's a swimming pool, a seating area for friends to relax on and a built-in bench where Sharapova reportedly enjoys reading by the pool. The property is also surrounded by lush greenery, ensuring ample privacy for its residents. The outdoor seating area is partially covered to protect against inclement weather during gatherings around the fire pit. The house boasts a tasteful and practical interior design, with abundant modern storage solutions in every room. The bathrooms are luxuriously fitted with free-standing baths and dual vanity sinks. High-quality artwork adorns the walls of the home, as well as plenty of modern furnishings and a built-in flat-screen TV to watch the latest films and media on. There is even a small nook in the living room filled with natural light, perfect for those who like to unwind with a book or glass of wine as the sun sets over the City of Angels. It remains uncertain whether Sharapova and Gilkes still reside in the property or if they've already relocated to Europe. The report adds that the couple own a house in Florida, which provides them with the option to return to the United States at any time.
The Hill
5 hours ago
- Politics
- The Hill
Trump's WSJ lawsuit is as dangerous as it is unprecedented
President Trump made history on Friday when he became the first president to sue a newspaper for an article that exposed something he did not want brought to light. In so doing, he again used the Oval Office as a platform to settle scores and to carry out a personal vendetta rather than to serve the public interest. Trump's unprecedented step came in the context of his heightened sensitivity about anything having to do with Jeffrey Epstein, the infamous deceased child sexual abuser. On July 17, The Wall Street Journal triggered the suit when it published an article that claimed Trump had sent Epstein a 'lewd' birthday card in 2003 when the latter turned 50 years old. Trump reacted almost immediately, filing suit the next day seeking $10 billion in damages. But he has his eyes on something even bigger than that suit — namely the possibility of weakening the Constitution's protection of press freedom. His lawsuit alleges that the Journal's article was an attempt to 'inextricably link President Trump to Epstein' and that the Journal 'falsely claim[ed] that the salacious language of the letter is contained within a hand-drawn naked woman, which was created with a heavy marker.' The president claims that the newspaper 'failed to attach the alleged drawing, failed to show proof that President Trump authored or signed any such letter, and failed to explain how this purported letter was obtained.' His lawsuit charges that with 'malicious intent … Defendants concocted this story to malign President Trump's character and integrity and deceptively portray him in a false light.' Those allegations tee up the constitutional battle that the president wants to wage. Trump's suit against the Journal has already reaped benefits, redirecting Epstein-related ire from the MAGA base away from him. His supporters now have a familiar target: the press and its alleged persecution of the president. In addition, it is an important step in Trump's long-running desire to get the United States Supreme Court to reverse decades of precedent and make it easier for public figures to win libel and defamation suits against newspapers and other media outlets. Like other strongman leaders, if he can't control the media directly, he wants to coerce and intimidate it. Relaxing its legal protection is one way to accomplish that goal. In the 2016 campaign, Trump promised: 'One of the things I'm going to do if I win, I'm going to open up our libel law so when they (the press) write purposely negative and horrible and false articles, we can sue them and win lots of money.' He has failed so far to deliver on that promise. But as we know, he is not easily dissuaded. Newspapers, radio or television stations that have the audacity not to do the president's bidding must be made to pay a price, with the hope that others will seek to avoid that fate by censoring themselves. Trump's quick and unprecedented resort to the courts sends a clear message to any media outlet that crosses him. He may be feeling good, but the rest of us should not be. As Thomas Jefferson wrote in 1786: 'Our liberty depends on the freedom of the press, and that cannot be limited without being lost.' He went on to note that 'To the sacrifice, of time, labor, fortune, a public servant must count upon adding that of peace of mind and even reputation. And all this is preferable to European bondage. ' Almost 200 years later, Supreme Court Justice Hugo Black reiterated Jefferson's sentiment. 'The Founding Fathers gave the free press the protection it must have to fulfill its essential role in our democracy,' he explained. 'The press was to serve the governed, not the governors.' Turmp wants exactly the opposite. Seven years before Black wrote those lines, the Supreme Court, in another classic defense of press freedom, made it very hard for public figures to win defamation suits against news outlets of the kind Trump filed on Friday. 'To sustain a claim of defamation or libel,' the court said, 'the First Amendment requires that the plaintiff show that the defendant knew that a statement was false or was reckless in deciding to publish the information without investigating whether it was accurate.' Justice William Brennan explained that America's 'profound national commitment to the principle that debate on public issues should be uninhibited, robust, and wide-open' meant 'that it may well include vehement, caustic, and sometimes unpleasantly sharp attacks on government and public officials.' Echoing Jefferson, he added, 'Injury to official reputation affords no more warrant for repressing speech that would otherwise be free than does factual error.' Since 1964, public figures have found it nearly impossible to succeed in cases like the one Trump filed on Friday. Whether he or the Journal loses in the lower courts, the president may be hoping that his case will make its way to the Supreme Court so it can again come to his rescue and do his bidding. Justices Clarence Thomas and Neil Gorsuch have already indicated their belief that the court's 1964 decision and its actual malice standard should be overruled. So, keep an eye on what happens to Trump's suit against The Wall Street Journal. The Journal's fate will be important in shaping the fate of the freedom of all Americans.
The Journal
6 hours ago
- Politics
- The Journal
Wall Street Journal barred from covering Trump's Scotland visit after Epstein letter report
THE WALL STREET Journal, branded as a 'pile of garbage' by US President Donald Trump, has been evicted from the press pool that will be covering the president's weekend visit to Scotland, according to Politico . Politico reported that White House Press Secretary Karoline Leavitt confirmed to the outlet that the Wall Street Journal would not be included in the press pool for the Scotland trip due to its 'fake and defamatory conduct'. The Wall Street Journal's report on an alleged sexually suggestive letter reportedly sent by Trump to Epstein has exacerbated tensions between the president and one cohort of his supporters. A growing number of 'MAGA' supporters have grown frustrated over the failure and refusal to release the so-called 'Epstein files' and 'the list' said to contain the names of high-ranking politicians and famed public figures that sexually abused underage girls on the disgraced financier's infamous island. In the wake of the publication's article on the alleged letter, Trump announced that he would be pursuing legal action against the outlet. On Friday, he posted to Truth Social: 'We have just filed a POWERHOUSE Lawsuit against everyone involved in publishing the false, malicious, defamatory, FAKE NEWS 'article' in the useless 'rag' that is, The Wall Street Journal.' Advertisement He continued to say that his administration has 'proudly held to account' a list of media outlets, including 'The Fake Pulitzer Prizes'. 'This lawsuit is filed not only on behalf of your favorite President, ME, but also in order to continue standing up for ALL Americans who will no longer tolerate the abusive wrongdoings of the Fake News Media.' He had previously said that he told Rupert Murdoch, the owner, that it was a 'Scam' and that he shouldn't print the article. 'But he did, and now I'm going to sue his ass off, and that of his third rate newspaper.' The Wall Street Journal is not the first news organisation to have been blocked by Donald Trump. In February, he banned the Associated Press from the White House after it continued to use the term 'Gulf of Mexico' after Trump renamed it the 'Gulf of America'. Trump is to visit Turnberry and Aberdeen on his visit to Scotland. He is due to meet with UK Prime Minister Keir Starmer, as well as Scotland's First Minister John Swinney. He owns two golf courses in Scotland. Meanwhile, Police Scotland is reportedly being threatened with legal action by its own officers over the force's plans to police the US president's visit, with officers allegedly stating that excessive working hours breach its workforce agreement. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
