26th December 2024 – (San Francisco) xAI, the artificial intelligence venture founded by Elon Musk, has successfully raised $6 billion in a Series C financing round, bringing its total funding to $12 billion, as reported by TechCrunch on Wednesday.
This latest round follows a previous $6 billion tranche secured in May. Notable investors in the current funding include Andreessen Horowitz, BlackRock, Fidelity, Lightspeed, Morgan Stanley, and Nvidia, among others. Kingdom Holdings, the Saudi conglomerate, contributed approximately $400 million, according to a public filing that also revealed xAI’s valuation has nearly doubled to $45 billion.
The Financial Times noted that only investors from xAI’s previous fundraising round were eligible to participate in this latest funding effort. In a statement, xAI expressed its commitment to advancing its technology, stating, “xAI’s most powerful model yet is currently training, and we are focused on launching innovative new consumer and enterprise products.” The funds will be allocated to enhance infrastructure, develop groundbreaking products, and accelerate research and development efforts.
Founded last year, xAI has already launched Grok, its flagship generative AI model, which powers various features on X, including a chatbot available to both X Premium subscribers and free users in select regions.
In the broader AI landscape, competitors Anthropic and OpenAI have also seen significant funding, with Anthropic securing $4 billion from Amazon, raising its total to $13.7 billion, and OpenAI raising $6.6 billion in October, bringing its investment total to $17.9 billion. These megadeals have propelled AI venture capital activity to $31.1 billion across over 2,000 deals in the third quarter of 2024, according to PitchBook data.
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