Elon Musk’s xAI has recently revealed a successful Series C funding round, securing $6 billion in investments. This milestone elevates the company’s valuation to over $40 billion, as xAI focuses on advancing its AI endeavors and bolstering its technological infrastructure.
xAI has closed a $6 billion Series C funding round, announcing plans to invest the fund to enhance its AI products and expand its infrastructure. The funding is expected to support projects such as the Grok AI model and the multibillion-dollar supercomputer site in Memphis, Tennessee, designed to train its advanced AI models. The funding round attracted high-profile investors, including BlackRock, Andreessen Horowitz (A16Z), Kingdom Holding, Fidelity, and Sequoia Capital. Notably, Fidelity, Kingdom Holding, and Sequoia had also participated in the company’s $6 billion Series B round in May.
This latest funding surge propels xAI’s valuation to a range of $40 billion to $50 billion, as reported by multiple sources. In its announcement, xAI confirmed it is currently training Grok 3, its next-generation AI chatbot. While not yet available, the model is expected to be released by the end of the year, as previously indicated by a June tweet from Elon Musk.
xAI has raised an impressive $12 billion this year through its Series B and Series C funding rounds. The rounds attracted notable investors, including Morgan Stanley, Kingdom Holding, Andreessen Horowitz, chip design giant Nvidia, and semiconductor firm AMD.
In 2024, xAI focused on developing its AI language models and the supercomputer used to train them. The computer, called “Colossus,” has 100,000 Nvidia GPUs for training AI and is set to double in size for heavier workloads. Sam Altman, CEO of OpenAI, praised how quickly the supercomputer became operational and noted that xAI could become a strong competitor. OpenAI, however, currently leads with a $157 billion valuation.
xAI’s AI model, Grok 2, is available to users on X but it does not yet have a standalone app like OpenAI’s ChatGPT. Also, Grok 3 is expected to offer more computing power and faster responses than its predecessor.
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