Elon Musk xAI Raises $6B, Valuing Company at $24B

The latest funding announcement is another significant move for the company launched last July

Liz Hughes, Editor, IoT World Today and AI Business

May 27, 2024

1 Min Read
Elon Musk
Photo by Apu Gomes/Getty Images

Elon Musk’s xAI has raised $6 billion in a series B funding round, bringing the company’s valuation to $24 billion.

The company made the announcement Sunday saying the funds will be used to bring xAI’s first products to market and build advanced infrastructure, as well as accelerate the research and development of future technologies. 

Key investors include Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Company, Prince Alwaleed Bin Talal and Kingdom Holding.

xAI is developing advanced AI systems the company says are “truthful, competent and maximally beneficial for all of humanity. The company said its mission is to “understand the true nature of the universe.”

The latest funding announcement is another significant move for the company launched last July. In November, xAI released Grok-1, an AI modeled after the “Hitchhiker’s Guide to the Galaxy” to answer almost anything, and even suggest what questions to ask. 

“Grok is designed to answer questions with a bit of wit and has a rebellious streak, so please don’t use it if you hate humor,” according to a company announcement.

That was followed by an improved model with long context capabilities and another that brought image understanding to the system.

Related:Meet Grok: Elon Musk's No Filter, Sarcastic ChatGPT Rival

About the Author(s)

Liz Hughes

Editor, IoT World Today and AI Business

Liz Hughes is an award-winning digital media editor with more than three decades of experience in newspaper, magazine and online media industries. 

A proven digital media strategist and editor, Liz has produced content and offered editorial support and leadership for a variety of web publications, including Fast Company, NBC Boston, Street Fight, QuinStreet, WTWH Media, AOL/Patch Media and Design News.

A skilled social media strategist experienced in developing and maintaining an audience across multiple platforms and brands, Liz also enjoys sharing her knowledge and expertise to help businesses small and large.

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