Elon Musk’s xAI has announced the successful completion of its Series B funding round, raising $6 billion.
The funding round saw participation from key investors, including Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Company, Saudi Arabia’s Prince Alwaleed Bin Talal and Kingdom Holding and more.
Since its inception in July 2023, xAI has achieved notable advancements, said the company on Sunday. xAI launched its Grok-1 model on X in November and recently introduced the improved Grok-1.5 model, featuring long context capability, and Grok-1.5V, which includes image understanding. The open-source release of Grok-1 has allowed for various applications, optimizations, and extensions of the model.
What will the $6 billion in funds allow for? They will help bring xAI’s first products to market, build advanced infrastructure, and accelerate research and development efforts. xAI plans to continue its rapid progress with multiple technology updates and product announcements expected in the coming months.
“xAI is primarily focused on the development of advanced AI systems that are truthful, competent, and maximally beneficial for all of humanity. The company’s mission is to understand the true nature of the universe,” said the company in a press release.
“Join xAI if you believe in our mission of understanding the universe, which requires maximally rigorous pursuit of the truth, without regard to popularity or political correctness,” said Musk on late Sunday.
According to Musk, “Pre-money valuation was $18 [billion].”
The Information claims xAI will be using the funds to build a massive computer dubbed, the “gigafactory of compute”, and to have it up and running by the fall of 2025, according to what Musk told investors.
xAI’s apparent super computer will have Nvidia’s latest H100 graphics processing units and will be at least 4x the size of the biggest GPU clusters in existence, made up of a staggering 100,000 semiconductors to train the next version of Grok, xAI’s chatbot that is trained using real-time data from X. The AI wars are heating up, folks.
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These key investers have far more money than brains. The cybertruck is a prime example of what Elon truly represents.