Elon Musk's xAI Secures $6 Billion in Funding
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Elon Musk's artificial intelligence startup, xAI, has completed a massive $6 billion funding round, Bloomberg reports, citing a regulatory filing with the US Securities and Exchange Commission. The funding round, which involved 97 investors, comes after months of negotiations and reportedly values the company at over $40 billion.
The filing, released Thursday, details equity financing from a diverse group of investors, with stakes ranging as low as $77,593. However, the document does not disclose the names of investors, the precise valuation, or the company's revenue. Bloomberg News previously reported in October that xAI was seeking funding at a $40 billion valuation, excluding previously raised capital.
Musk founded xAI in 2023, and the company has pursued aggressive fundraising efforts since its inception. In May, xAI completed a separate $6 billion funding round, which resulted in a $24 billion valuation, including cash raised. Several investors from the latest round, including Sequoia Capital and Andreessen Horowitz, also hold stakes in Musk's X (formerly Twitter) and other ventures.
A significant portion of the new funding is likely earmarked for xAI's new supercomputer facility in Memphis, which opened earlier this year. Local officials hailed the facility as the "largest multibillion-dollar investment in the city of Memphis’s history," and its presence is attracting other major tech companies to the area.
xAI's primary product, a chatbot called Grok, is currently accessible to paying subscribers of X.