Elon Musk’s xAI leaps to $24 billion valuation with $6 billion funding round Elon Musk’s xAI leaps to $24 billion valuation with $6 billion funding round
The company will use the funding to advance the research to release its first products to the market.
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Updated: May. 27, 2024 at 2:06 pm UTC
ZACK/MCOM / CC BY 2.0 DEED / Wikimedia. Remixed by CryptoSlate
Artificial intelligence firm xAI has secured $6 billion in a Series B funding round, according to a May 27 statement.
Elon Musk, the company’s founder, revealed that its pre-money valuation was $18 billion, meaning this latest funding round boosted its valuation to $24 billion—a significant milestone considering the firm launched just 11 months ago, in July 2023.
The funding round attracted prominent investors, including Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Company, Prince Alwaleed Bin Talal, and Kingdom Holding.
How xAI plans to utilize the funding
xAI plans to use the funds to launch its initial products, develop advanced infrastructure, and accelerate research and development of future technologies. “There will be more to announce in the coming weeks,” Musk shared in a social media post on X.
The company further emphasized its mission:
“xAI is primarily focused on the development of advanced AI systems that are truthful, competent, and maximally beneficial for all of humanity. The company’s mission is to understand the true nature of the universe.”
Experts believe this funding will enable xAI to compete with industry leaders like OpenAI, Google, and Anthropic in the race for generative AI dominance. These companies are driving significant investments and innovation in the rapidly evolving AI landscape.
In November, xAI introduced an AI-powered chatbot named “Grok” for select paying users of X, the social media platform formerly known as Twitter. Since then, xAI has announced Grok 1.5, featuring enhanced long context and image capabilities, and is currently recruiting engineers and researchers.
Musk stated:
“Join xAI if you believe in our mission of understanding the universe, which requires maximally rigorous pursuit of the truth, without regard to popularity or political correctness.”
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X
X (formerly Twitter) is an American social media company based in San Francisco, California, that was founded by Jack Dorsey, Noah Glass, Biz Stone, and Evan Williams in March 2006 and was launched July of the same year.
Google LLC is an American multinational technology company that is most commonly known for its search engine that was founded by Sergey Brin and Larry Page in 1998.
Anthropic
Anthropic is a US-based artificial intelligence (AI) startup and public-benefit corporation founded by former members of OpenAI in 2021.
OpenAI
OpenAI is an AI research and deployment company committed to ensuring that general-purpose artificial intelligence helps all of humanity.
South African-born Elon Musk has founded several companies, including X.com (which later became PayPal), SpaceX and Tesla Motors.
