xAI Secures USD 6 Billion in New Funding to Enhance AI Capabilities

xAI, Elon Musk’s artificial intelligence (AI) company, has raised USD 6 billion in new capital, according to a regulatory filing. The equity financing came from 97 investors and includes stakes as small as USD 77,593, as stated in the filing with the US Securities and Exchange Commission on Thursday. The filing did not disclose the identities of the investors. Furthermore, the company has not provided specific information regarding its valuation or revenue figures.

• Make Telecom Talk My Trusted Source
• 
• 

Also Read: OpenAI Raises USD 6.6 Billion to Accelerate AI Research and Expansion

xAI’s Latest Funding

The funding comes as xAI seeks to bolster its presence in the AI industry by expanding its Memphis, Tennessee, supercomputer to accommodate at least one million graphics processing units (GPUs). Earlier reports indicate that existing investors, including Valor Equity Partners, Sequoia Capital, Andreessen Horowitz, and the Qatar Investment Authority, participated in the funding round.

Since its inception last year, xAI has launched its generative AI model, Grok, which powers features on X. The company reportedly plans to use funds from this round to purchase 100,000 AI chips from Nvidia.

Series B Funding

This new funding brings xAI’s total capital raised to USD 12 billion, adding to the USD 6 billion tranche secured earlier in May. The company stated that the Series B funding will be used to bring its first products to market, build advanced infrastructure, and accelerate research and development of future technologies.

“Our Series B funding round of USD 6 billion with participation from key investors including Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management and Research Company, Prince Alwaleed Bin Talal and Kingdom Holding, amongst others,” the company announced in May.