Elon Musk’s AI Startup xAI Raises $6 Bn In Funding Round
Notable backers in this Series B funding include Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, and Fidelity
Elon Musk’s AI startup, xAI, has secured USD 6 billion in its latest funding round. The influx of capital comes as Musk looks to support resources for xAI, intensifying its competitive stance against industry rivals such as OpenAI, Microsoft and Alphabet.
Notable backers in this Series B funding include Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, and Fidelity, among others. Musk, renowned for his early and prominent involvement in the AI sector, is strategically positioning xAI to lead in the rapidly evolving landscape.
The company’s flagship product, Grok, has been a focal point of development. From the launch of the ChatGPT-rival Grok 1.0 model to the recent introduction of Grok 1.5 with enhanced multimodal capabilities, xAI is pushing boundaries in AI technology.
In a bid to broaden its user base, xAI made Grok available to Premium+ subscribers on X, its platform charging USD 16 a month.
xAI plans to allocate the newly acquired funds towards product deployment, infrastructure development, and accelerated research and development efforts. Additionally, the company said it aims to forge strategic partnerships to expand Grok’s reach beyond its current user base.
Despite xAI’s aspirations to develop “truthful” AI systems, concerns have been raised regarding Grok’s news summary feature, which reportedly generates misleading information.
