June 29 (Cointime) - Inflection AI, a Palo Alto-based startup founded by Mustafa Suleyman and Reed Hoffman, has raised $1.3 billion in a funding round led by Microsoft and Nvidia, bringing its valuation to $4 billion.

The company is working with Nvidia and CoreWeave to install a cluster of 22,000 H100s, which it believes to be the largest GPU cluster for AI applications in the world. Inflection AI, which launched just a year ago, has already raised $225 million and recently released a chatbot called Pi, which takes a more personal and emotional approach compared to its competitors.

The surge in investor interest in AI has some speculating about an AI bubble.