Elon Musk's xAI says it has raised $6billion to develop artificial intelligence

28 May 2024 , 08:55

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Elon Musk wrote on the social media site X that before the investment, xAI had a valuation of $18billion

Investors are set to plough $6billion into artificial intelligence development for xAI, the technology enterprise run by Tesla owner Elon Musk.

The company said on its website that a Series B funding round will give the firm a much-needed boost to launch their first products and turbocharge research. The past year has seen "significant strides" in tech development at xAI, with further progress anticipated in the upcoming months.

The investor lineup for the funding round includes powerhouses like Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research, Valor Equity Partners, Vy Capital - and Saudi Prince Alwaleed Bin Talal alongside his Kingdom Holding group.

Before this considerable influx of funds, xAI was already valued at a striking $18billion, Mr Musk' revealed in a post post on social platform X. With this fresh financing, Musk's firm could pose significant competition to Microsoft and Open AI - the creators of Chat GPT.

Just last year, Musk announced the creation of xAI in July and introduced Grok, its bespoke artificial intelligence chatbot, in November.

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