xAI, Elon Musk’s AI start-up, has closed a $6 billion funding round, boosting its valuation to $24 billion. With investors like Kingdom Holding and significant support, xAI aims to rival industry giants like OpenAI and Anthropic in the AI sector.
Elon Musk’s AI start-up, xAI, successfully closed a $6 billion funding round, elevating its valuation to $24 billion. Despite being founded a year ago, xAI now rivals major AI firms like Microsoft-backed OpenAI and Anthropic, with funding amounts placing it among the top AI contenders.
Investors in this round include notable supporters of Musk, such as Kingdom Holding, Sequoia Capital, Andreessen Horowitz, and Saudi Prince Alwaleed Bin Talal. These backers had also previously supported Musk’s $44 billion acquisition of Twitter, now rebranded as X.
xAI’s chatbot, Grok, is integrated with X, enabling real-time data access and a broad user base. The funding will be used to market xAI’s first products, enhance infrastructure, and accelerate R&D. Musk pitches Grok as a truth-seeking alternative to current AI leaders like ChatGPT and Google’s Gemini.
Nvidia, the main chip supplier for AI systems, reported a significant surge in revenue, highlighting the growing demand for AI technology capabilities. Other major tech companies, including Microsoft, Google, and Meta, are heavily investing in AI development.
This financing positions xAI as a significant player in the rapidly evolving AI landscape, with future updates and products anticipated in the coming months.
