Elon Musk's xAI propels to $24 billion in valuation, second most valuable AI company in the world

Elon Musk's rapidly growing AI startup aims to compete with OpenAI, leveraging data from X and Tesla.

Elon Musk's xAI propels to $24 billion in valuation, second most valuable AI company in the world
AP Photo/Ebrahim Noroozi
Remove Ads

Elon Musk's artificial intelligence company xAI has announced the successful completion of its Series B funding round, raising an impressive $6 billion from a group of high-profile investors. The company, which was founded in July 2023, has quickly gained traction in the competitive AI landscape, with the goal of developing advanced AI systems that are "truthful, competent, and maximally beneficial for all of humanity."

In a blog post, xAI revealed the participation of key investors such as Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Company, Prince Alwaleed Bin Talal, and Kingdom Holding, among others. The funds raised will be used to bring xAI's first products to market, build advanced infrastructure, and accelerate research and development of future technologies.

Despite its relatively brief existence, xAI has already made massive strides in the AI space, rolling out its own AI chatbot, Grok, to compete with OpenAI's ChatGPT. Grok, which is exclusively available on Musk's social media platform X, has seen the release of two more sophisticated models, Grok 1.5 and Grok 1.5V, the latter featuring image understanding capabilities.

According to the Wall Street Journal, the latest funding round has propelled xAI's valuation to $24 billion, making it the second most valuable AI company in the world, trailing only OpenAI, which was founded in 2015 and is currently valued at an estimated $80 billion. Remarkably, the $6 billion raised by xAI is double the amount that Musk's team had initially targeted for this round of fundraising.

Musk himself has demonstrated a strong commitment to xAI, personally investing $750 million in the company, while his social media platform X has contributed an additional $250 million. The entrepreneur had previously stated that outside investors would own 25% of the company.

One of xAI's key advantages over its competitors is its access to data from Musk's other companies, including X, Tesla, and SpaceX. Musk has emphasized the importance of data in AI development, stating, "The two sources of unlimited data are synthetic data and real-world video. Tesla has a pretty big advantage in real-world video."

Remove Ads
Remove Ads

Don't Get Censored

Big Tech is censoring us. Sign up so we can always stay in touch.

Remove Ads