During a new round of capital, xAI raised some six billion dollars. This brings the value of Elon Musk’s AI company to $40 billion.
Elon Musk founded xAI, his own AI company, last year. The company was expected to reach $45 billion in value. Those expectations now seem almost fulfilled, according to a blog post on xAI’s website. Thanks to a new injection of capital, the company is now worth more than $40 billion. Investors include parties such as A16Z, Blackrock and Morgan Stanley. Elon Musk wants xAI to compete with OpenAI’s ChatGPT and Google’s Gemini.
Fresh billions
In a new round of investment, xAI raised $6 billion. Investors include A16Z, Blackrock, Fidelity Management & Research Company, Kingdom Holdings, Lightspeed, MGX, Morgan Stanley, OIA, QIA, Sequoia Capital, Valor Equity Partners and Vy Capital. In addition, some strategic participants are also involved, including Nvidia and AMD, which can help the company in scaling its infrastructure faster.
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These companies are not all strangers to Musk. Some of them already participated in May’s investment round, when xAI also raised $6 billion. Musk wants to use these fresh billions to invest in his AI infrastructure.
One of xAI’s best-known achievements is the Grok language model, which has since grown to Grok 3, the most powerful model to date according to xAI.