Elon Musk's artificial intelligence startup xAI said it has raised $6 billion in its latest funding round as it continues to grow in the battle against rival OpenAI.
Musk took a victory lap on Monday after announcing on his social media platform X that the company had completed a Series C funding round, typically the final stage of venture capital funding.
“We're going to need more computing!” Musk wrote, apparently referencing the famous line from “Jaws.”
The need for “bigger computing” likely means Musk plans to use that investment to build large processing centers to house the supercomputers needed to train and run more advanced AI models. This is thought to indicate that
The company had raised $6 billion in a Series B funding round in May at a post-money valuation of $24 billion. In late November, xAI raised another $5 billion at a $50 billion valuation. According to the Wall Street Journal.
Now, xAI appears to have raised a larger round of $6 billion, although Musk did not reveal the valuation.
Investors in the latest funding round include Sequoia Capital, Morgan Stanley, BlackRock, Fidelity, Kingdom Holdings of Saudi Arabia, sovereign wealth funds of Oman and Qatar, Lightspeed Venture Partners, and Valor Equity Partners. , Dubai-based Vy Capital and UAE-based MGX. said the company.
xAI said in its latest announcement that it is training the latest version of its chatbot, Grok 3. Grok 3 was originally scheduled to be available by the end of this year.
The cash injection comes as Musk engages in an AI arms race with ChatGPT maker OpenAI, which he co-founded and is now run by Sam Altman.
Musk, who left OpenAI after losing a power struggle with Altman and other co-founders, is suing the company and its major financial backer, Microsoft.
He alleges that Microsoft and OpenAI, valued at about $157 billion as of October, illegally sought to corner competitors' markets in generative artificial intelligence and side hustle businesses.
