Elon Musk's artificial intelligence startup xAI has raised an additional $6 billion from investors as it ramps up competition from Sam Altman's OpenAI, according to a regulatory filing.
XAI – the company that created that sneaky “Grok” chatbot available on Musk’s social media site X – has raised funding from a total of 97 investors. SEC filing It was revealed on Thursday. The minimum investment amount in exchange for shares was $77,593.
The filing did not name the individual investors or disclose the size of other investments made as part of the round.
last month, CNBC reported The round included $5 billion from a Middle East sovereign wealth fund and $1 billion from other investors, pushing xAI's valuation to $50 billion.
The funding is expected to help Musk's AI startups gain greater access to computing power.
XAI will expand its supercomputer facility in Memphis, Tennessee, to include at least 1 million graphics processing units (GPUs), local officials announced earlier this week. GPUs are required to train xAI models.
Even with its latest funding, xAI is much smaller than OpenAI, which took a commanding lead in the AI race with the release of ChatGPT.
In October, OpenAI closed a $6.6 billion funding round, valuing the company at $157 billion. Mr. Altman is also leading an effort to restructure OpenAI as a for-profit company, relegating the nonprofit organization that has governed the company since its founding in 2015 to a less visible role.
As The Post reported earlier this week, Mr. Musk, who co-founded OpenAI but later fell out with Mr. Altman, filed for an injunction to prevent the company from becoming a commercial company.
Musk, who filed a major lawsuit against Altman and OpenAI earlier this year, accused the company of violating antitrust laws through its collaboration with Microsoft, which has pumped billions of dollars into the business as a major investor. insisted.
“Plaintiffs and the public deserve a moratorium,” Musk's injunction application states. “OpenAI's journey from nonprofit to for-profit behemoth is itself fraught with anti-competitive conduct, flagrant violations of its philanthropic mission, and rampant self-dealing.”
“Microsoft and Altman cannot roam the market like Frankenstein, piecing together corporate structures that serve their financial interests at any time,” the filing added.
with post wire
