Elon Musk’s xAI Secures $6B in Funding, Valuation Soars to $24B

May 28, 2024 5 mins read

Elon Musk’s AI startup, xAI, has raised $6 billion in a Series B funding round, boosting its valuation to $24 billion. The funds will support product development and commercialization efforts.


Artificial intelligence startup xAI Corp., based by way of Elon Musk last year, has efficaciously raised $6 billion in a Series B funding spherical. This considerable funding boosts xAI’s valuation to $24 billion, up from its previous $18 billion valuation.

The funding round saw participation from a notable group of investors, including Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research, Prince Alwaleed Bin Talal, and Kingdom Holding, among others.

xAI plans to use the capital to accelerate the commercialization of its AI products and build advanced infrastructure. This announcement follows a recent report from The Information, indicating that xAI intends to construct a supercomputer using 100,000 H100 graphics processing units from Nvidia Corp. to support its AI development efforts. The total cost of this supercomputer, even with potential price reductions for the GPUs, is estimated to exceed $1 billion.

There is speculation that xAI might partner with Oracle Corp. to develop this large-scale AI training environment, which will require extensive hardware, including storage systems.

Since its launch, xAI has introduced a large language model called Grok, capable of generating text and code. The company has since released an enhanced version, Grok 1.5, which performed impressively in the HumanEval benchmark, solving 74.1% of the presented problems.

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