xAI is expected to pump the money to enhance the capabilities of Grok and build an AI supercomputer to train and run its next version.
Elon Musk’s AI startup, xAI, has secured a monumental $6 billion in Series B funding. This round, confirming earlier reports, saw participation from prominent venture capital firms and investors such as Valor Equity Partners, Vy Capital, Andreessen Horowitz (A16z), Sequoia Capital, Fidelity Management & Research Company, and Prince Alwaleed Bin Talal’s Kingdom Holding. The funding brings xAI’s pre-money valuation to an impressive $18 billion, highlighting the significant financial backing and confidence in the startup’s potential.
This substantial investment, one of the largest in the AI sector for a Series B round, underscores the aggressive strides xAI is making with its Grok-1 model and chatbot. The capital will be used to accelerate xAI’s development efforts, positioning it to compete more effectively against industry leaders like OpenAI, Anthropic, and Google in the pursuit of artificial generalized intelligence (AGI).
