Elon Musk’s artificial intelligence company xAI has successfully raised $6 billion from a consortium of key investors to support the expansion of its technology.
The financing, announced on company website Sunday will be used to “bring xAI’s first products to market, build advanced infrastructure, and accelerate the research and development of future technologies.”
“xAI will continue this strong trajectory of progress over the coming months, with multiple exciting technology updates and products to be announced soon,” he said.
“xAI is primarily focused on developing advanced AI systems that are truthful, competent, and maximally beneficial to all humanity. The company’s mission is to understand the true nature of the universe.”
The Series B funding round attracted investors such as Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Company, Prince Alwaleed Bin Talal and Kingdom Holding, among others.
Developing cutting-edge AI technology requires significant investment, especially in high-end hardware. Nvidia’s upcoming Blackwell B200 AI graphics cards, critical to AI development, cost between $30,000 and $40,000 each.
According to Information, xAI requires 100,000 of Nvidia’s current H100 chips to build a supercomputer for an upgraded version of its Grok AI chatbot. Musk reportedly informed investors that the new data center is expected to launch by fall 2025.
Microsoft has already entered into a multi-billion dollar partnership with OpenAI. Meanwhile, OpenAI CEO Sam Altman is reportedly seeking billions of dollars to revolutionize the global chip industry. Musk, co-founder of OpenAI, is currently suing the company, alleging that it has strayed from its original mission to benefit humanity.
In an article onthe social media platform formerly known as Twitter that Musk owns, he encouraged potential employees to join xAI if they are committed to the company’s mission of “understanding the universe, which requires research the most rigorous truth, without regard to popularity or political correctness. “.
The company also said in its official statement that xAI is hiring for many positions and is looking for talented individuals ready to join a small team focused on “making a meaningful impact on the future of humanity.”
Musk revealed the creation of xAI in July last year, with the ambitious goal of discovering the “true nature of the universe”. Despite his active engagement in the advancement of AI, Musk is a strong advocate for careful and responsible development of the technology.
In MarchMusk announced that xAI’s chatbot, Grok, would be available to premium subscribers on X.
