Key Takeaways
- xAI raised $6B in Collection C funding with main traders like BlackRock, a16z, and Constancy.
- NVIDIA and AMD assist xAI’s infrastructure via superior GPU expertise.
Share this text
Elon Musk’s synthetic intelligence firm xAI, announced Monday it had raised $6 billion in a Collection C funding spherical, with backing from main traders together with BlackRock, Andreessen Horowitz (a16z), Constancy, Morgan Stanley, and different high-profile traders.
Strategic traders NVIDIA and AMD additionally participated within the spherical, persevering with their assist for xAI’s infrastructure scaling efforts. The funding spherical was unique to xAI’s present traders, a lot of whom had beforehand supported Musk’s acquisition of X, in line with Monetary Instances.
The newest financing, first revealed via a SEC submitting final week, brings xAI’s whole funding to $12 billion. It follows a earlier $6 billion spherical accomplished earlier in 2024. Based on CNBC, Musk’s AI enterprise targets a valuation of round $50 billion, which might double its valuation six months in the past.
The contemporary capital might be used to assist the analysis and growth of xAI’s generative AI mannequin, Grok, and to increase its infrastructure, the staff shared within the announcement.
Since its Collection B funding in Could 2024, xAI has launched a number of key initiatives, together with Colossus, which it describes as “the world’s largest AI supercomputer,” Grok 2, and the xAI API for builders.
The corporate additionally launched Aurora, its proprietary picture era mannequin, and built-in Grok with the X platform to supply real-time data processing capabilities.
xAI is at the moment coaching Grok 3, which it calls its “strongest mannequin but.” The corporate goals for it to be akin to and even surpass OpenAI’s GPT-5, with a concentrate on enhancing its capabilities in pure language understanding, picture era, and coding duties.
Musk anticipates that Grok 3 might be launched by the tip of this yr. Following its launch, xAI plans to increase its infrastructure to incorporate 200,000 GPUs, with the potential to scale as much as as many as 300,000 GPUs sooner or later.
Share this text
