BUSINESS
Elon Musk's xAI raised USD 6 billion in a Series C round to expand AI infrastructure, develop groundbreaking products, and advance research.
Elon Musk's artificial intelligence (AI) company, xAI, announced on Monday, December 23, that it has raised USD 6 billion in a Series C funding round. Prominent investors, including BlackRock, Nvidia, AMD, and Fidelity, participated in the round, as per the company’s official blog post. This marks the second major funding round for the company in 2024. Earlier in May, xAI secured USD 6 billion in a Series B round from investors like Andreessen Horowitz and Sequoia Capital.
The Series C round saw contributions from renowned firms such as A16Z, Kingdom Holdings, Lightspeed, MGX, Morgan Stanley, OIA, QIA, and Valor Equity Partners, among others. Strategic partners Nvidia and AMD also joined the funding, supporting xAI's rapid growth.
Plans for the USD 6 Billion Funding
According to xAI, the newly raised funds will be used to expand its AI infrastructure and enhance research and development (R&D) efforts. "The funds from this financing round will help us accelerate our advanced infrastructure, deliver groundbreaking products for billions of users, and invest in future technologies aimed at understanding the true nature of the universe," the company stated in its release.
Key Achievements Since Series B
In 2024, xAI has made significant strides in the AI sector. Among its key initiatives are:
Colossus: The world’s largest AI supercomputer, developed with Nvidia chips.
Grok 2: The latest version of their language model.
xAI API: A platform offering developers access to the company’s foundation models.
Aurora: An advanced image generation model powered by Grok.
Successful integration of Grok technology on the social media platform X.
Future Plans
xAI is now focused on training its next-generation AI model, Grok 3. The company is also working on developing new consumer and enterprise products designed to leverage its advanced technologies, including Grok, Colossus, and X, to transform daily life and work.
With this latest funding, xAI is well-positioned to further its mission of pushing the boundaries of AI and understanding the universe.
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