ALBAWABA - The artificial intelligence startup xAI, founded by Elon Musk, revealed that it has successfully raised $6 billion in its Series C fundraising round. The financing is aimed to support infrastructure growth and expedite research and development efforts, as revealed in a business blog post.
BlackRock, Fidelity, a16z, Sequoia Capital, Kingdom Holdings in Saudi Arabia, the sovereign wealth funds of Oman and Qatar, and MGX, located in the United Arab Emirates, were among the notable investors in the round, the company announced.
Nvidia and AMD, two strategic investors, also made contributions, demonstrating their commitment to collaborate with xAI in rapidly expanding its AI infrastructure.
Since its May 2024 Series B round, which similarly raised $6 billion and resulted in a post-money value of $24 billion, xAI has advanced significantly. Although the most recent round's value is unknown, rumors indicate that it places xAI among the most valuable startups in the world, according to AFP.
The introduction of Colossus, the biggest AI supercomputer in the world, which is powered by 100,000 Nvidia Hopper GPUs and is expected to double in size, is one of the major accomplishments emphasized by xAI.
The company also unveiled Aurora, a sophisticated image-generation tool, the xAI API enabling developers to access its foundation models, and Grok 2, its improved language model. Grok features have also been included into the X platform.
Since its founding in March 2023, xAI has grown rapidly, demonstrating its desire to be an acknowledged innovator in artificial intelligence while overcoming obstacles in a cutthroat and expensive industry.
“The funds from this financing round will be used to further accelerate our advanced infrastructure, ship groundbreaking products that will be used by billions of people, and accelerate the research and development of future technologies enabling the company’s mission to understand the true nature of the universe,” xAI commented in a blog post.
