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Elon Musk Raises $6 Billion in Funding for ‘xAI’ Company

In a significant move that solidifies its position in the AI ​​industry, Elon Musk’s xAI has secured $6 billion in Series B funding from investors including Saudi Arabia’s Kingdom Holdings.

Business Insider Reports Founded just a year ago, the AI ​​startup has attracted investment from prominent venture capital firms such as Andreessen Horowitz, Sequoia Capital and Saudi Arabia’s Kingdom Holding. The funding round marks a significant step for xAI as it looks to compete with acclaimed ChatGPT developer Sam Altman’s OpenAI.

Elon Musk shared the news on his X/Twitter account, stating that “We’ll have more to announce in the coming weeks.” In a subsequent post, Musk revealed xAI’s pre-money valuation at a staggering $18 billion, highlighting investors’ confidence in the company’s potential and future prospects.

The announcement was made by Bloomberg and Financial Times Regarding the company’s outreach to investors, a big influx of cash would be crucial to Musk’s vision of establishing xAI as a strong alternative to OpenAI, which he co-founded with Altman before stepping down from the company’s board in 2018.

Sam Altman, head of OpenAI

OpenAI chief Sam Altman (Kevin Dietsch/Getty)

OpenAI is reportedly worth more than $80 billion. The New York TimesOpenAI has been at the forefront of AI development with its groundbreaking ChatGPT, but Musk has expressed disappointment with OpenAI’s direction, particularly its partnership with Microsoft, which he believes is at odds with the company’s original non-profit mission.

In February, Musk filed a lawsuit against OpenAI, accusing the company of violating its nonprofit status by partnering with Microsoft: “OpenAI was founded as an open source (that’s why I named it ‘Open’ AI) nonprofit company to serve as a counterweight to Google, but has now become a closed source, profit-maximizing company effectively controlled by Microsoft,” Musk wrote on X/Twitter.

Click here for details Read more from Business Insider here.

Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship.

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