Elon Musk’s xAI Raises $6 Billion at a Valuation of $18 Billion

IBL News | New York

Elon Musk’s owned xAI announced yesterday that it raised $6B Series B from investors, such as Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Company, Prince Alwaleed Bin Talal, and Kingdom Holding, at a pre-money valuation of $18 billion.

In November 2023, xAI released the chatbot Grok-1 as open-source (but without any training code). Months later, it announced the Grok-1.5 model with long context capability and Grok-1.5V with image understanding.

“The funds from the round will be used to take xAI’s first products to market, build advanced infrastructure, and accelerate the research and development of future technologies,” said the company. xAI is hiring now for numerous roles.

xAI’s pitch revolves around developing “advanced AI systems that are truthful, competent, and maximally beneficial for all of humanity” after “understanding the true nature of the universe.”

xAI partners closely with X Corp to bring its technology to more than 500 million users of the X app.