Elon Musk’s xAI raises $6 billion to develop AI products


Elon Musk’s company, xAI, has announced a significant boost in funding this week. The company is set to receive $6 billion (€5.5 billion) from investors to support the development of artificial intelligence (AI) products, marking a substantial investment in the future of AI technology.

This new funding will play a crucial role in bringing xAI’s first products to market, establishing necessary infrastructure, and accelerating research into future technologies. According to the company, these funds will enable xAI to maintain its rapid progress trajectory, with plans for multiple exciting technology updates and product launches in the near future.

xAI has made significant strides in AI technology development over the past year, and the momentum is expected to continue in the months ahead. The company has garnered support from a diverse group of investors in its latest funding round, including Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research, Valor Equity Partners, Vy Capital, Saudi Prince Alwaleed Bin Talal, and Kingdom Holding.

Prior to this investment, xAI had a valuation of $18 billion (€16.5 billion), as revealed by Musk on the social media platform X. This injection of funds positions Musk’s company to compete vigorously in the race to advance AI technology, facing competitors such as Microsoft and Open AI, known for their creation of Chat GPT.

xAI, introduced by Musk in July of the previous year, has already made significant strides, releasing its AI chatbot named Grok in November. With this substantial funding, xAI is poised to continue pushing the boundaries of AI innovation and play a significant role in shaping the future of technology.

Source: euronews.com