Elon Musk’s AI startup xAI has successfully raised $6 billion in series B funding, propelling its post-money valuation to $24 billion as investors place substantial bets on emerging challengers to established players like OpenAI in the increasingly competitive AI arena.
The funding round saw participation from prominent investors including Andreessen Horowitz and Sequoia Capital, as announced by the company in a blog post.
Elon Musk revealed that the company’s pre-money valuation stood at $18 billion in a post on X.
The substantial capital infusion will be utilized by xAI to bring its initial products to market, develop advanced infrastructure, and expedite research and development efforts for future technologies, according to a statement by xAI.
Elon Musk hinted at further developments in the coming weeks in response to the funding announcement, suggesting that there are more significant announcements on the horizon.
In the rapidly evolving landscape of generative AI, companies such as Microsoft-backed OpenAI and Alphabet’s subsidiaries are at the forefront, driving considerable investments and fostering innovation as they vie for dominance in the field.