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Elon Musk’s xAI Secures $6B from Investors for AI Development

On its website Sunday, xAI — the AI artificial intelligence (AI) company founded by Elon Musk — announced that it has raised a Series B funding round that will be used to launch xAI’s first products and accelerate research.

While xAI has impressed over the last year in developing its technology, further advances remain to be completed over the forecast months. Current funding is also being contributed to by Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research, Valor Equity Partners, Vy Capital, Saudi Prince Alwaleed Bin Talal, and Kingdom Holding.

xAI was valued at $18 billion before this investment.

This funding will help xAI compete with Microsoft and OpenAI, the creators of ChatGPT, in the race to develop advanced AI. Musk founded the company in July of last year and introduced its AI chatbot, Grok, in November.

Featured image: Credit: Getty Images

James Dargan
About the author
James Dargan

James Dargan is a writer and researcher at The AI Insider. His focus is on the AI startup ecosystem and he writes articles on the space that have a tone accessible to the average reader.

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