Elon Musk’s artificial intelligence venture, xAI, has successfully raised $6 billion in its Series C funding round, propelling the company’s valuation to over $40 billion. This substantial investment aims to enhance xAI’s computational capabilities, positioning it as a formidable competitor in the AI industry.
Notable investors in this venture include well-known firms like Andreessen Horowitz, Blackrock, Fidelity, Lightspeed, MGX, Morgan Stanley, OIA, QIA, Sequoia Capital, Valor Equity Partners, Vy Capital, Nvidia, and AMD, as well as several other undisclosed organizations.
A recent disclosure has shown that Kingdom Holdings, a Saudi conglomerate, invested around $400 million in this funding round. The recent filing revealed that xAI’s valuation has soared to $45 billion, almost doubling its earlier figure.
The recent surge in investment has propelled xAI’s overall funding to an impressive $12 billion. The total encompasses the $6 billion that the company obtained in an earlier funding round conducted in May.
According to the Financial Times report , participation in xAI’s latest funding round was restricted solely to investors who had previously backed the company. In addition, sources indicate that those who participated in funding Elon Musk’s purchase of Twitter were given the chance to obtain as much as 25% of xAI’s shares.
“xAI’s most powerful model yet … is currently training and we are now focused on launching innovative new consumer and enterprise products. The funds from this financing round will be used to further accelerate our advanced infrastructure, ship groundbreaking products … and accelerate … research and development” xAI stated.
The company has emerged as one of the globe’s most valuable startups, boasting an estimated valuation of $50 billion. Still, it remains significantly overshadowed by its main rival OpenAI, which is valued at approximately $157 billion.
Amid rising projections, detractors have highlighted that AI companies are rapidly depleting their funds without a definitive route to financial success.
