Elon Musk’s xAI announced Monday that it has raised $6 billion in Series C funding. Participants in this round included Sequoia Capital, with Nvidia and AMD as strategic investors. The AI startup plans to use the funding to ship new products and build infrastructure.
Elon Musk’s xAI has completed a Series C funding round, raising a total of $6 billion, the company announced in a blog post on Monday.
Musk’s artificial intelligence company said participants included a16z, Sequoia Capital, Morgan Stanley, BlackRock, Fidelity, Saudi Arabia’s Kingdom Holdings, sovereign wealth funds of Oman and Qatar, and California-based Lightspeed. Venture Partners, Chicago-based Valor Equity Partners and Dubai-based Vi, the company announced. Capital and UAE-based technology investor MGX.
xAI added that chipmakers Nvidia and AMD have joined as strategic investors and “continue to support xAI in rapidly expanding its infrastructure.”
Musk shared the news on his X platform, writing, “It takes a lot of computing.” He also tagged xAI in a meme generated by xAI’s Grok chatbot that quoted a famous line from the movie “Jaws.”
Musk is likely emphasizing that training and running AI models requires huge amounts of processing power, which is fueling huge demand for microchips and driving NVIDIA stock’s roughly 8% share since early 2023. It is thought that this is supporting the doubling of the price.
Founded last March, xAI raised $6 billion in a Series B round in May at a post-money valuation of $24 billion. The Wall Street Journal reported in late November that the company had raised an additional $5 billion at a valuation of $50 billion. xAI appears to have ultimately raised a larger round of $6 billion, but the valuation was not disclosed.
The startup highlighted its progress, including the launch of Colossus, in its own blog posts since May. Colossus is the world’s largest AI supercomputer with 100,000 Nvidia Hopper GPUs, and xAI plans to soon double its size to 200,000 chips.
xAI also released version 2 of Grok, an application programming interface (API) for developers to build on its platform, the Aurora image generation model for Grok, and version 2 of Grok on X.
The company is training for Grok 3 and is “focused on launching innovative consumer and enterprise products that harness the power of Grok, Colossus, and X to transform the way we live, work, and play.” “There is,” he said.
Musk’s fledgling business will use the Series C funding to accelerate infrastructure growth, ship new products and speed up research and development of technologies that will enable its “mission to understand the nature of the universe.” Then he said.
