Elon Musk’s AI company, xAI, raised $6 billion in a Series C funding round, bringing its total funding to $12 billion. Major investors include Andreessen Horowitz, Blackrock, Fidelity, Nvidia, AMD, and others. Saudi Arabia’s Kingdom Holdings contributed $400 million, boosting xAI’s valuation to $45 billion, nearly doubling its previous value.
xAI plans to use the funds to enhance its AI infrastructure, develop groundbreaking products, and accelerate R&D. Its flagship AI model, Grok, integrated into X (formerly Twitter), handles functions like news summarization, chatbot services, and image generation. Grok’s design focuses on “truth-seeking” and edgy interactions, positioning it as an alternative to competitors like ChatGPT.
The company faces challenges, including allegations of unfair competition by OpenAI, which Musk co-founded but left in 2018. Despite this, xAI leverages data from Musk’s other ventures, such as Tesla and SpaceX, to enhance its models The company’s Memphis data center, powered by 100,000 Nvidia GPUs, is set for a major upgrade.
xAI’s rapid growth mirrors the broader surge in AI investments, with companies like OpenAI and Anthropic also raising billions to remain competitive in the expanding AI market.
