The Strategist

Elon Musk's AI startup xAI raises $6bn in investment round

05/28/2024 - 06:44

Elon Musk's AI business, xAI, has completed a $6 billion financing round. According to the billionaire, the company was worth $18 billion before the funding.

Bret Hartman
Bret Hartman
The artificial intelligence startup xAI, founded by Elon Musk, has raised $6 billion in a funding round, according to the company.

Investment funds Valor Equity Partners, Andreessen Horowitz, Vy Capital, Fidelity Management & Research Company, Saudi Prince Al Waleed bin Talal and others are among the investors who took part in the xAI funding round. As per the announcement, the business intends to use the cash raised to construct sophisticated infrastructure, expedite research and development in future technologies, and deliver the first xAI products to market.

According to Bloomberg, the xAI financing round has grown to be one of the biggest in the sphere of AI technologies. The Financial Times reported in January, citing sources, on xAI's intentions to draw $6 billion in funding. The business was in discussions with international investors from all over the world, including those in the Middle East, Hong Kong, Japan, and South Korea, say people who spoke with the publication. According to the sources, xAI might be worth $20 billion.