Elon Musk’s xAI Raises $6B; Valued at $24B

Elon Musk’s artificial intelligence company xAI said it has closed a $6 billion Series B funding round. The company’s funding round—launched less than a year ago—included Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Company, Prince Alwaleed Bin Talal and Kingdom Holding, among others.

This fundraiser is one of the largest in the industry to date. The largest investment was made by Microsoft, which amounted to about $13 billion in OpenAI. Meanwhile, Amazon.com invested about $4 billion in Anthropic.

In a blog post, xAI said it has made significant progress in less than one year. Launched in July 2023, the company released its first product, Grok-1, on X in November. The AI model was improved to the Grok-1.5 model with long context capability, and then to Grok-1.5V with image understanding. The new improvement has allowed Grok to improve in various applications, optimize, and expand.

xAI promised that it will continue on its steep trajectory of progress in the coming months. The company has teased the imminent announcement of many exciting technology and product updates. The $6 billion raised in Series B will be used for “xAI’s first products to market, [to] build advanced infrastructure, and accelerate the research and development of future technologies.” xAI’s previous valuation was valued at $18 billion, and the new investment boosts its valuation to $24 billion.

xAI is primarily focused on developing advanced artificial intelligence systems that are truthful, competent, and maximally useful to all humanity. The company’s goal is to create AI that is honest, not politically correct, and its mission is to understand the true nature of the universe.

In pursuit of rapid growth, the company is recruiting for numerous positions and seeking talented individuals to join the still small team committed to making a meaningful impact on the future of humanity.

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