Elon Musk’s xAI raises $6 billion in Series C funding

Elon Musk’s AI startup, xAI, has secured $6 billion in a Series C funding round, marking a significant milestone in its mission to develop advanced artificial intelligence systems.

The company made the announcement in a blog post on Monday. It said that major investors, including Andreessen Horowitz (A16Z), BlackRock, Fidelity, Kingdom Holdings, Sequoia Capital, Valor Equity Partners, Vy Capital, and strategic tech giants NVIDIA and AMD, participated in the round.

According to xAI, the fresh capital will be used to scale xAI’s infrastructure, drive research and development, and roll out groundbreaking consumer and enterprise products aimed at global adoption.

xAI has achieved significant milestones since its $6 billion Series B funding round in May, valued at $24 billion.

Key developments include:

Colossus: The world’s largest AI supercomputer with 100,000 NVIDIA Hopper GPUs, operational in just 122 days. Plans are underway to double its capacity to 200,000 GPUs.

Grok 2:

A cutting-edge language model with advanced reasoning capabilities.

xAI API: Offering developers global, low-latency access to xAI’s foundation models.

Aurora: An autoregressive image generation model enhancing multimodal AI understanding and creativity.

Grok on X: Integrated with the X platform, enabling real-time world insights, web search, citations, and image generation via Aurora. Earlier in December, the chatbot was made free to all users on the microblogging platform with some limitations. Users previously had to purchase a premium subscription of X to access Grok.

The company is also training its most powerful AI model yet, Grok 3, with a focus on launching innovative solutions designed to transform industries and daily life.

With this funding, xAI aims to push the boundaries of AI technology while staying committed to building systems that are truthful, competent, and beneficial for humanity. The company is actively hiring talent aligned with its vision to make a transformative impact on the future.

In October, the Wall Street Journal reported that the company is in early discussions to secure significant new funding that could push the startup’s valuation to approximately $40 billion.