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Elon Musk’s xAI announced Monday that it has raised $6 billion in a Series C funding round, valuing the company at more than $40 billion as it continues to strengthen its AI products and infrastructure.
The funding round was announced on Monday. (Photo by: Muhammad Selim Kolkata/Anadolu via Getty Images)
Anadolu (via Getty Images)
important facts
The company closed a $6 billion round and said the money would be allocated to products and infrastructure, likely due to the company’s Grok AI model and a number of buildings in Memphis, Tennessee, used to train the AI models. It appears to be a reference to the billion-dollar supercomputer site.
Investors include BlackRock, A16Z, Saudi conglomerate holding company Kingdom Holding, Fidelity, and Sequoia Capital, the latter three of which were part of xAI’s $6 billion Series B funding round in May. Participated.
The latest funding round values xAI at at least $40 billion, with multiple reports pegging Musk’s company at a value of $40 billion or $50 billion.
In a funding announcement, xAI said it was training Grok 3, which was not yet available and was expected to be released by the end of the year, according to a tweet from Musk in June.
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12 billion dollars. That’s the amount xAI raised this year in Series B and Series C funding rounds that included investors such as Morgan Stanley, Kingdom Holding, Andreessen Horowitz, chip designer Nvidia, and semiconductor company AMD.
Main background
xAI spent 2024 building an AI language model and the supercomputer used to train it. Dubbed “Colossus,” the computer features 100,000 Nvidia graphics processing units used to train the AI, and will eventually double in size to handle much higher training workloads. You will be able to do it. Sam Altman, CEO of xAI’s competitor OpenAI, praised the short time needed to get the supercomputer up and running, and at the New York Times’ Dealbook Summit, Musk He said he expects his company to be a “really serious competitor” (OpenAI has so far been valued at far more than xAI’s massive $157 billion valuation). xAI’s AI model, Grok 2, is available to users of X (formerly known as Twitter), but it doesn’t yet work as a standalone app in the same way as OpenAI’s ChatGPT. Grok 3 reportedly boasts even more computing power and improved responsiveness than its predecessor, according to the chatbot.
Read more
What we know about XAI as it gears up for the AI race — $6 billion in new funding (Forbes)
Inside Elon Musk’s mad dash to build a giant xAI supercomputer in Memphis (Forbes)
