Elon Musk’s xAI secures $6 billion in new funding
Elon Musk’s startup xAI announced it has secured $6 billion from investors, making waves in the increasingly competitive AI market.
The latest funding, with contributions from prominent venture capitalists and a Saudi prince, boosts the firm’s valuation to $24 billion, up from a pre-funding estimate of $18 billion as noted by Musk.
“xAI is pleased to announce our Series B funding round of $6 billion,” the company shared in a blog post on Sunday.
“”The proceeds from this round will drive the introduction of xAI’s debut offerings, the advancement of cutting-edge infrastructure, and the hastening of research and development for future innovations,” the company elaborated.
Musk hinted on his social media platform, X, that “more announcements” are on the horizon.
The latest funding round saw contributions from Valor Equity Partners, Andreessen Horowitz, Sequoia Capital, and Prince Alwaleed Bin Talal, among others.
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Musk launched the company in July last year, just after signing a letter advocating for a pause in AI advancements.
He’s one of the few investors worldwide with the financial clout to rival AI giants like OpenAI, Google, and Meta.
Creating an AI model on par with those industry giants demands immense investment in computing power, infrastructure, and expertise.
xAI announced on Sunday that its core mission is to create “advanced AI systems that are truthful, competent, and maximally beneficial for all of humanity.”
They’re developing a chatbot named Grok, capable of accessing X, formerly known as Twitter, in real time.
Earlier this month, Musk informed investors of his intention to construct a supercomputer dubbed the “gigafactory of compute” to bolster xAI’s development efforts.
As per Musk’s statement to an industry news outlet, the proposed supercomputer would surpass the size of today’s largest GPU clusters by at least fourfold, similar to those employed by Meta for training its AI models.