Elon Musk’s artificial intelligence startup, xAI, had secured $6 billion in a Series C funding round.
This round of funding, announced on Tuesday, is a big deal for the company, as it pushes the limits of AI technology.
Musk, known for his ambitious ventures, co-founded xAI to advance scientific discovery and create transformative AI solutions.
The funding round attracted significant investments from prominent firms such as Andreessen Horowitz (A16Z), BlackRock, Fidelity, and Sequoia Capital.
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Strategic technology giants NVIDIA and AMD also contributed, emphasising their commitment to supporting xAI’s rapid growth.
According to xAI’s blog post, the funds will be used to enhance its infrastructure and develop groundbreaking products for both consumer and enterprise markets.
“The funds will help xAI expand its capabilities in developing next-generation AI solutions that could redefine various industries,” the company stated.
Expanding capabilities and vision
The company is currently focused on deploying its flagship Grok language model and expanding its Colossus supercomputer, which has 100,000 Nvidia GPU power.
With this new funding, xAI plans to double the number of GPUs to 200,000, significantly boosting its processing power. This enhancement will enable the development of more sophisticated AI models and tools.
Musk expressed his excitement about the funding on his platform X (formerly Twitter), stating, “We are gonna need a bigger compute!” This sentiment reflects xAI’s ambitious goals as it seeks to compete with industry leaders like OpenAI and Anthropic.
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With competitors obtaining huge investments—OpenAI recently received over $13 billion from Microsoft—the competitive scene is becoming more intense.
As xAI continues to grow its ecosystem, it emphasises making AI tools more accessible and impactful in everyday applications. The company is actively hiring talent that is aligned with its vision to foster innovation and drive forward its mission of understanding the true nature of the universe.
After this fundraising round, xAI’s valuation is over $40 billion, indicating massive AI growth and influence. At xAI, we want to change how we live and work using AI solutions that prioritise truthfulness and benefit people.