xAI Raises USD 6 Billion in Series C Funding

xAI, the artificial intelligence (AI) firm co-founded by Elon Musk, has raised USD 6 billion in its Series C funding round, with participation from key investors including A16Z, Blackrock, Fidelity Management and Research Company, Kingdom Holdings, Lightspeed, MGX, Morgan Stanley, OIA, QIA, Sequoia Capital, Valor Equity Partners and Vy Capital, among others, the company said in a blog post on December 24. Strategic investors Nvidia and AMD also participated in the round.

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

Accelerating AI Infrastructure

With the new funding, the company aims to accelerate its infrastructure and the development of new AI products, including the deployment of its flagship Grok language model and Colossus supercomputer. This funding will also accelerate product offerings for both enterprise and consumer markets, particularly with recent launches like Grok 2 and Aurora, an AI-driven image generation model.

Grok 2, Colossus, and Aurora

Since its Series B in May 2024, xAI said it has made significant technical progress in AI technology, including the launch of Colossus, the world’s largest AI supercomputer, powered by 100,000 Nvidia Hopper GPUs. The system was operational in 122 days, with plans to double its GPU count.

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Doubling Colossus

“Soon, xAI will double the size of Colossus to a combined total of 200,000 Nvidia Hopper GPUs, achieved by using the Nvidia Spectrum-X Ethernet networking platform,” the company said.