Elon Musk's xAI lands $6B in new cash to fuel AI ambitions

Published On Dec 25, 2024, 3:17 PM

Elon Musk's AI company, xAI, has raised $6 billion in a recent fundraising round, bringing its total valuation to $45 billion. Notable investors include high-profile firms like BlackRock and Sequoia Capital, alongside a $400 million investment from Saudi's Kingdom Holdings. The funds will be used to accelerate the development of new AI products and the company's research capabilities, specifically enhancing its powerful AI model, Grok, which is designed to respond to queries in a unique and often controversial manner. xAI aims to integrate data from Musk's other ventures, such as Tesla and SpaceX, into its AI technologies, and is projected to grow rapidly, even as it faces competition from established firms like OpenAI and Anthropic.