Elon Musk’s artificial intelligence (AI) venture, xAI, has secured $6 billion in a Series C funding round, boosting its valuation to over $40 billion, according to an article in Forbes on Monday. Key investors include BlackRock, a16z, Saudi’s Kingdom Holding, Fidelity, and Sequoia Capital — all of whom had also participated in xAI’s $6 billion Series B round in May.
The funds will support the company’s continued development of its Grok AI models and its massive supercomputer infrastructure, “Colossus,” in Memphis, Tennessee. The computer, featuring 100,000 Nvidia GPUs, is expected to double in capacity, enhancing its ability to train advanced AI systems.
xAI is preparing to release Grok 3, a more powerful iteration of its current AI model, which is available through Musk’s X platform (formerly Twitter). The company has raised $12 billion in total this year, fueling its bid to rival OpenAI, which currently holds a valuation of $157 billion.
