Elon Musk's xAI Raises $6 Billion in Largest Series B, Valued at $24 Billion

May 27, 2024, 09:11 AM

Elon Musk's AI company, xAI, has successfully raised $6 billion in its Series B funding round, achieving a pre-money valuation of $18 billion and a post-money valuation of $24 billion. The funding round saw participation from prominent investors including Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, and Kingdom Holding. The funds will be used to bring xAI's first products to market, build advanced infrastructure, and accelerate research and development of future technologies. A significant portion of the funds is expected to be allocated for purchasing Nvidia's H100 GPUs. xAI's latest model, Grok-1.5V, which can process visual information in addition to text, is part of its strategy to compete with industry giants like OpenAI, Microsoft, and Google. This funding round is the largest Series B investment round ever, and xAI aims to leverage its 500 million monthly active users to challenge its competitors.