Elon Musk’s xAI Hits $24B Valuation After $6B Funding Boost

Elon Musk’s artificial intelligence startup xAI has raised $6 billion in a Series B fundraising boost. According to a statement released on May 27.

The business will use the money to conduct further research and introduce its initial products.

The company’s founder, Elon Musk, disclosed that its pre-money valuation was $18 billion; hence, this most recent investment round increased its valuation to $24 billion, a noteworthy achievement given that it was only founded in July 2023, or 11 months ago.

Prominent investors were drawn to the investment round, including Sequoia Capital, Prince Alwaleed Bin Talal, Vy Capital, Valor Equity Partners, Andreessen Horowitz, and Fidelity Management & Research Company.

How xAI intends to use the fund

The money will go toward helping xAI launch its first products, build cutting-edge infrastructure, and quicken the development of new technologies. Elon Musk stated on social media that “more will be announced in the upcoming weeks” regarding X.

The business underlined their goal once more:

“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.”

In the competition for supremacy in generative AI, experts predict that xAI will be able to contend with significant players in the market, like Open AI, Google, and Anthropic, with this investment. In the quickly changing field of artificial intelligence, these businesses spearhead significant investments and innovation.

For a small group of X users who had previously subscribed to Twitter, xAI unveiled “Grok,” an AI-powered chatbot, in November. Since then, xAI has released Grok 1.5, which includes improved lengthy context and image capabilities. Researchers and engineers are being sought after for this version of the software.

Musk said:

“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.”