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Elon Musk’s startup xAI announces $6 billion fundraising round

Elon Musk is pooling cash for his own AI startup, escalating the artificial intelligence arms race with his former colleagues at OpenAI.

Tesla tycoon’s company xAI — Powering the sarcastic Grok chatbot It announced it had raised $6 billion on Sunday The company has raised a new funding round, raising investment from venture capital giants Andreessen Horowitz and Sequoia Capital, as well as Saudi Arabia’s Prince Alwaleed bin Talal.

Musk said at X that the company was valued at $18 billion before the funding, and the latest round of funding brings the company’s valuation to $24 billion.

Elon Musk’s AI startup xAI announced that it has raised $6 billion in seed funding from investors. Reuters

Musk was a co-founder of OpenAI when it was a non-profit, but left the company after a power struggle with management and launched xAI less than a year later.

Earlier this month, The Post reported that xAI’s valuation was expected to exceed $20 billion due to a surge in demand from venture capitalists.

xAI said the funding will be used to bring xAI’s first products to market, build advanced infrastructure, and accelerate research and development of its future technologies.

“There will be more announcements in the coming weeks,” Musk said in a separate X post following the funding announcement.

Microsoft-backed OpenAI has seen its valuation rise to around $80 billion since introducing its AI-powered bot, ChatGPT, in late 2022.

Last March, Musk was one of thousands of tech luminaries who signed a letter calling for a moratorium on AI research due to potential risks to humanity.

xAI is the maker of Grok, an AI-powered chat bot featured on the X social media platform. SOPA Images/LightRocket via Getty Images

Musk has also criticized OpenAI for abandoning its non-profit status. Last July, he launched xAI to compete with OpenAI.

The startup rolled out Grok, an AI bot trained and integrated on the social media platform X, formerly known as Twitter.

Musk has touted Grok as a “non-awake” alternative to rival OpenAI’s ChatGPT and other learning language models.

Musk is battling his former colleagues at OpenAI, the company that founded ChatGPT. Reuters

In a blog post announcing the funding, xAI said it is “primarily focused on developing advanced AI systems that are honest, competent, and in the greatest possible interest of all humanity.”

Musk recently told investors that xAI plans to build a supercomputer to power the next version of Grok, The Information reported Saturday, citing an investor presentation.

Musk reportedly said he wants the proposed supercomputer to be up and running by fall 2025, adding that xAI may partner with Oracle to develop the behemoth.

The Washington Post has reached out to xAI and Oracle for comment.

When completed, the connected collection of chips — Nvidia’s flagship H100 graphics processing unit, or GPU — will be at least four times larger than the largest GPU clusters in existence today, Musk said in an investor presentation in May, The Information reported.

Nvidia’s powerful H100 family of GPUs dominates the market for data center chips for AI, but they can be hard to come by due to high demand.

Musk said earlier this year that the Grok 2 model would require around 20,000 Nvidia H100 GPUs to train, while the Grok 3 model and beyond would require 100,000 Nvidia H100 chips.

With post wire

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