Elon Musk’s xAI Raised a Funding $6 Billion in Latest Funding Round
Elon Musk’s artificial intelligence startup, xAI, raised a funding of $6 billion on Thursday, December 5, 2024. According to Bloomberg, this xAI funding round had been in the pipeline for several months and had valued the startup at $40 billion.
The xAI equity financing came from 97 investors and included stakes as small as $77,593. The company did not name its investors and the valuation in its filing to U.S. Securities and Exchange Committee.
Expansion Plans in the U.S.
Elon Musk raised this funding round for xAI to expand their supercomputer facility in Memphis and Tennessee. The billionaire founded this company in 2023 and has been raising funds for it relentlessly. In May 2024-, xAI had a funding where the company raised $6 billion on the valuation of $24 billion.
With Donald Trump coming back as president, Musk and xAI will be able to benefit on policies that are likely favorable to domestic innovation and relax regulatory hurdles for businesses like Tesla, Big Tech and AI in the country.
xAI vs OpenAI
The rivalry between xAI and OpenAI has gained much attention in the tech world, as both companies are trying to be at the forefront of this rapidly changing AI landscape.
xAI latest funding comes shortly after Open AI raised a funding of $6.6 billion in October 2024, which valued the company at a whopping $157 billion.
As competition between xAI and OpenAI increases, this funding round may enhance the capabilities of xAI and increase its market share. The competition is what reflects the dynamic nature of the AI sector and the huge investments being put into it.
The xAI founder has been vocal about his criticism of Chat GPT founder. In fact, last week Musk filed a lawsuit against Open AI to challenge its transition to a for-profit model.
Musk’s latest success with xAI reflects not only his dedication to advancing artificial intelligence but also the growing confidence investors have in the transformative potential of AI technologies.
Grok AI Chatbot Testing
Along with xAI’s success, Musk’s social media platform X has begun testing the Grok AI chatbot on free users. The experimental features that were previously available to paid subscribers only are open to all users, which clearly reflects Musk’s desire to break AI into the popular level.
Grok is being built for conversational help, it also uses recent breakthroughs in natural language processing. This aligns with Musk’s strategy of making AI an integral part of the everyday digital experience and further solidifies X as a platform built on innovation at its core.
