Elon Musk's xAI Raises $6 Billion in Series B Funding at $18 Billion Valuation

May 27, 2024, 05:49 AM

Elon Musk's artificial intelligence startup, xAI, has successfully raised $6 billion in a Series B funding round. The funding was backed by prominent venture capital firms including Andreessen Horowitz, Sequoia Capital, Tribe Capital, Valor Equity Partners, and Fidelity. The pre-money valuation of xAI was reported to be $18 billion. The newly acquired funds are earmarked for product launches, infrastructure development, and accelerating research and development of future technologies. Additionally, a significant portion of the funds is likely to be used for purchasing Nvidia's H100s. xAI's latest model, Grok-1.5V, can process visual information in addition to text capabilities. The funding also saw participation from investors in Saudi Arabia.