Elon Musk’s artificial intelligence startup doubled its valuation, securing more than $6 billion in financing.
In a statement announcing its milestone, xAI said, “We have closed our Series C funding round of $6 billion with participation from key investors including A16Z, Blackrock, Fidelity Management & Research Company, Kingdom Holdings, Lightspeed, MGX, Morgan Stanley, OIA, QIA, Sequoia Capital, Valor Equity Partners and Vy Capital, amongst others. Strategic investors NVIDIA and AMD also participated and continue to support xAI in rapidly scaling our infrastructure.”
“xAI’s most powerful model yet, Grok 3, is currently training and we are now focused on launching innovative new consumer and enterprise products that will leverage the power of Grok, Colossus, and X to transform the way we live, work, and play,” the company added.
xAI explained that the financing “will be used to further accelerate our advanced infrastructure, ship groundbreaking products that will be used by billions of people, and accelerate the research and development of future technologies enabling the company’s mission to understand the true nature of the universe.”
Musk, whose xAI is designed to be a competitor to OpenAI, filed a lawsuit against OpenAI and its CEO Sam Altman, alleging their development of artificial intelligence “for the benefit of humanity broadly” has proven to be false.
Musk’s lawyers claimed the billionaire was approached in 2015 by Altman and OpenAI co-founder Greg Brockman and agreed to form a nonprofit lab that would develop artificial general intelligence for the “benefit of humanity.”
“To this day, OpenAI, Inc.‘s website continues to profess that its charter is to ensure that AGI benefits all of humanity.’ In reality, however, OpenAI, Inc. has been transformed into a closed-source de facto subsidiary of the largest technology company in the world: Microsoft,” the lawsuit filing said. It noted, “Under its new Board, it is not just developing but is actually refining an AGI to maximize profits for Microsoft, rather than for the benefit of humanity.”
