Musk’s AI Startup xAI Secures $6 Billion in Funding
Elon Musk’s artificial intelligence startup, xAI, has raised $6 billion in its latest funding round, the company announced on Monday. The investment comes as the firm seeks to carve out a significant position in the competitive AI industry.
Key backers include US venture capital firms, chipmakers NVIDIA and AMD, and sovereign wealth funds from Saudi Arabia and Qatar. This latest injection follows a similar $6 billion raised in May, underscoring the mounting investor interest in xAI’s ambitions.
The startup, known for its flagship Grok chatbot, is now valued at an estimated $50 billion, making it one of the world’s most valuable private tech companies. However, it remains a distant competitor to OpenAI, which commands a staggering valuation of $157 billion.
Critics have highlighted the ongoing challenges for AI firms, pointing to massive cash burn and uncertainty over profitability. Despite this, xAI is bullish about its prospects, stating that the funds will be used to “ship groundbreaking products for billions” and to advance its research mission of exploring “the true nature of the universe.”
Musk, also CEO of SpaceX and Tesla, launched xAI in July 2023, shortly after signing a call for a temporary halt in developing advanced AI models. He has often warned of AI’s risks but remains deeply invested in the sector.
