Elon Musk’s AI startup, xAI, raised $6 billion in Series B funding, reaching a $24 billion valuation, to enhance product development and infrastructure. This positions xAI to compete with AI giants in the intensifying generative AI market.
27 May 2024 – Elon Musk’s AI startup, xAI, has successfully raised US$6 billion in a Series B funding round, bringing its post-money valuation to an impressive US$24 billion. This significant financial milestone underscores investor confidence in xAI’s potential to rival established AI leaders such as OpenAI.
The funding round attracted substantial backing from prominent venture capital firms, including Andreessen Horowitz and Sequoia Capital, as revealed in a blog post by xAI on Sunday. Elon Musk, via a post on X, disclosed that the company’s pre-money valuation stood at $18 billion.
The newly acquired capital will be allocated towards launching xAI’s initial products, developing cutting-edge infrastructure, and accelerating the research and development of future technologies, according to the company. Musk hinted at more announcements to come in the following weeks in a subsequent post on X.
This move places xAI in a competitive position within the fiercely contested generative AI sector, currently dominated by major players such as Microsoft-backed OpenAI and Alphabet. These companies are driving significant investments and innovations, shaping the rapidly evolving AI landscape.
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