SAN FRANCISCO — Elon Musk’s artificial intelligence company, xAI, has secured $6 billion in a Series C financing round, bringing its total funding to $12 billion. This announcement follows a $6 billion raise earlier in May, as reported by TechCrunch on Wednesday.
The latest round saw participation from prominent investors including Andreessen Horowitz, BlackRock, Fidelity, Lightspeed, MGX, Morgan Stanley, OIA, QIA, Sequoia Capital, Valor Equity Partners, Vy Capital, Nvidia, and AMD. Saudi Arabia’s Kingdom Holdings contributed approximately $400 million, according to a public filing, which also revealed xAI’s new valuation of $45 billion, nearly double its previous figure.
“xAI’s most powerful model yet is currently in training,” the company stated. “The funds from this financing round will be used to further accelerate our advanced infrastructure, ship groundbreaking products, and expand our research and development efforts.”
The report highlighted that only investors who participated in xAI’s previous fundraising round were eligible to join the Series C round, according to the Financial Times.
Founded last year, xAI quickly gained traction with the release of Grok, a generative AI model that powers various features on X (formerly Twitter). The AI-powered chatbot is available to X Premium subscribers and free users in selected regions.
The AI industry continues to see massive investments. Rivals Anthropic and OpenAI have also raised significant capital, securing $4 billion and $6.6 billion respectively, in recent months. Anthropic’s funding, led by Amazon, brings its total to $13.7 billion, while OpenAI’s total investment stands at $17.9 billion.
According to PitchBook, AI venture capital activity reached $31.1 billion across over 2,000 deals in the third quarter of 2024, underscoring the sector’s rapid growth and increasing investor confidence.
