xAI Seeks Billions More in Funding Round

The Wall Street Journal says that Elon Musk’s AI company, xAI, is in talks to raise more money at a value of around $40 billion

A lot of money is being raised for xAI in this round. It wants to add to the $6 billion it raised in May for Series B funds. The rumored value would be almost twice as high as xAI’s post-money value of $24 billion.

Musk set up xAI last year. Not long after, the company—which had just moved into OpenAI’s old offices—made its first model, Grok, to run different parts of Musk’s social network X (formerly known as Twitter).

xAI now has an API for businesses. The company also says that the next generation of Grok models is being trained on a large collection of 100,000 Nvidia GPUs.

Musk often says X’s data gives xAI a big advantage over competitors. This month, X changed its privacy rules so that outside groups, like xAI, can use X posts to teach their models.