Elon Musk's AI business, xAI, has managed to gather around $6 billion in funding
The company's pre-money valuation was $18B
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Key notes
- Elon Musk launched xAI, aiming for a $20 billion valuation.
- Now, xAI raised $6 billion in Series B funding, backed by Andreessen Horowitz and Sequoia Capital.
- The funds will launch xAI’s initial products, build infrastructure, and accelerate R&D.
When Elon Musk arrived to buy off Twitter, the billionaire made a lot of drastic changes. From firing employees to renaming it to X, the laundry list goes on and on, but perhaps the most surprising one is the launch of xAI, his venture into the latest tech.
Earlier this year, the Tesla boss announced that it’s aiming for a total valuation of $20 billion to put it in the same league as the Microsoft-backed OpenAI. And now, according to a recent announcement, xAI has raised $6 billion through its Series B funding round.
“xAI is primarily focused on the development of advanced AI systems that are truthful, competent, and maximally beneficial for all of humanity. The company’s mission is to understand the true nature of the universe,” the company says in the official announcement.
The funds will then be used to launch xAI’s initial products, build advanced infrastructure, and speed up R&D for future technologies, with investors like Andreessen Horowitz and Sequoia Capital backing the funding round. Musk also said in a tweet that the company’s pre-money valuation was $18 billion.
Musk, formerly an OpenAI investor as well, backed away from the GPT-4 creators following disagreements with its current CEO Sam Altman.
xAI introduced Grok AI, its debut chatbot, now available on X (formerly Twitter). The company now promises more exciting technology updates and new products coming soon and is now hiring AI researchers, engineers, and coders in various locations in the US and the UK.
