With a $24 billion valuation, Elon Musk's xAI obtains $6 billion in fundraising. Here's what Musk said

The artificial intelligence business xAI, established by Elon Musk, has completed a $6 billion Series B fundraising round. The goal of xAI is to create cutting-edge AI systems.

Musk is well-known for his early support and engagement in the artificial intelligence space, especially since he co-founded OpenAI. To combat possible risks he sees in the field, his attention has now switched to developing xAI. 

Who made xAI investments?

Prominent investors include Andreessen Horowitz, Sequoia Capital, Valor Equity Partners, Vy Capital, Fidelity Management & Research Company, as well as Prince Alwaleed Bin Talal's Kingdom Holding took part in the Series B fundraising round.

The wide range of supporters demonstrates a strong belief in xAI's ability to succeed in the AI industry.

Musk claims that the firm was valued at $18 billion before to financing, and that amount increased to $24 billion thereafter.

"Join xAI if you believe in our mission of understanding the universe, that requires maximally rigorous pursuit of the truth, without thinking about popularity or political correctness," Musk said in an article on X.

What does fundraising aim to achieve?

With the $6 billion, xAI intends to launch its first products, build cutting-edge infrastructure, and quicken the creation of new technologies.

The Grok AI service, which the business launched in November 2023 on the Musk-owned social media network X (previously Twitter), has already seen significant advancements.

Grok-1.5, which has the ability to grasp extended contexts, and Grok-1.5V, which can interpret images, came next. Furthermore, Grok-1 has been made publicly available by xAI in order to promote progress in a range of applications and improvements.

growing rivalry

The significant investment in xAI demonstrates the growing competitiveness in the AI industry, which is being led by Alphabet's Google and OpenAI, a key participant supported by Microsoft.

Significant innovation and investments in generative AI technology are being led by these businesses.

Notable is xAI's entrance into this space, positioning itself as a competitor seeking to create "truthful" AI systems, even in the face of criticism over its Grok AI news summary tool, which has been known to provide false information.

What will xAI do next?

Although xAI hasn't revealed its precise value in the wake of the most recent fundraising round, sources indicate it may be in the range of $18 billion and $24 billion.

The business has made multiple allusions to impending product and technology launches.

In a recent post on X, Musk underlined this point by saying, "There will be more to announce in the coming weeks."