Official valuation reports or major financial news outlets

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

May 28, 2024, 04:59 PM

Elon Musk's artificial intelligence startup, xAI, has successfully raised $6 billion in a Series B funding round. The investment was led by prominent venture capital firms, including Andreessen Horowitz, Sequoia Capital, and Valor. This funding round, which is the largest Series B raise of all time, values xAI at $24 billion. The capital will be used to develop new versions of Grok AI and build a supercomputer with 100,000 Nvidia H100 chips. The substantial investment underscores Musk's commitment to making xAI a significant player in the AI industry, positioning it as a formidable competitor to OpenAI. The funding will also support xAI's efforts to launch its first product and accelerate research and development activities. xAI, just fifteen months old, is now valued at roughly one-third of OpenAI. The investment marks the largest early stage fundraise ever and may also contribute to building Optimus’ World Model.