Elon Musk’s AI company, xAI, announced this week that it has secured $6 billion (€5.5 billion) in new funding from a group of prominent investors. These investors include Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research, Valor Equity Partners, Vy Capital, and Saudi Prince Alwaleed Bin Talal along with Kingdom Holding.
The substantial funding will be directed towards several key areas:
- Bringing AI Products to Market: The funds will help launch xAI’s first products, marking a significant step in the company’s commercial efforts.
- Building Infrastructure: Investment in infrastructure will support the development and deployment of AI technologies.
- Accelerating Research: The funding will also boost ongoing research and development activities, aiming to push the boundaries of AI innovation.
xAI stated that it has made “significant strides” over the past year in developing its technology and plans to continue this rapid progress with multiple exciting updates and new products expected to be announced soon.
Before this latest investment, xAI was valued at $18 billion (€16.5 billion). This new funding is poised to enhance xAI’s competitive edge in the race to develop advanced AI technologies, pitting it against major industry players like Microsoft and OpenAI, the creators of ChatGPT.
Elon Musk unveiled xAI in July last year, and by November, the company had already released its AI chatbot named Grok. This rapid development underscores xAI’s ambition and capability in the fast-evolving AI landscape.
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