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

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