Headline
AI X-Value Assessment Surpasses $40 Billion Following $6 Billion Financing Event
Elon Musk's xAI Corporation disclosed on Monday that it managed to gather $6 billion in their Series C funding round, escalating the company's worth over $40 billion as they progress in enhancing their AI products and infrastructure.
Pivotal Points
The company succeeded in closing the $6 billion funding and stated that the funds will be channelled towards product developments and infrastructure, which might allude to the Grok AI model and the multi-billion-dollar supercomputer location in Memphis, Tennessee, utilized for training xAI's AI models.
Investors joining the scheme included Blackrock, A16Z, the Saudi conglomerate Kingdom Holding, Fidelity, and Sequoia Capital, who had previously contributed to xAI's $6 billion Series B round in May.
Following this latest funding round, xAI's valuation surpasses $40 billion, as per various sources, with some reports suggesting a valuation of $50 billion.
In its funding announcement, xAI mentioned that it was currently training Grok 3, which has yet to be introduced, according to a tweet by Musk in June.
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Major Digit
$12 billion. This is the total amount xAI has amassed from their Series B and Series C funding rounds, with backing from investors such as Morgan Stanley, Kingdom Holding, Andreessen Horowitz, chip designer Nvidia, and semiconductor firm AMD.
Key Background
xAI has spent 2024 developing its AI language models and the computer used to train them, the colossal machine named "Colossus," boasting 100,000 Nvidia graphics processing units, designed to strengthen AI training capabilities. Sam Altman, CEO of xAI's competitor OpenAI, praised the swiftness in getting the supercomputer operational and stated during The New York Times DealBook Summit that he believes Musk's firm will emerge as a "serious competitor" (at the moment, OpenAI outperforms xAI in value with a massive $157 billion valuation). While Grok 2, xAI's AI model, is accessible to users on X (previously known as Twitter), it does not yet operate on a standalone app like OpenAI's ChatGPT. Grok 3, reportedly, will showcase increased computational power and improved reaction speed compared to its predecessor, according to the chatbot.
Additional Reading
What We Know About xAI As It Gears Up for the AI Race—With $6 Billion in New Funding (Our Website)
Inside Elon Musk’s Ambitious Pursuit of a Massive xAI Supercomputer in Memphis (Our Website)
xAI Corporation's Series C funding round, worth $6 billion, will likely contribute to the advancement of their AI models and infrastructure, potentially including the Grok AI model and the supercomputer in Memphis. This funding round has significantly increased xAI's valuation, surpassing $40 billion, and has brought their total funding to $12 billion from Series B and Series C rounds. Investors like Blackrock, A16Z, Kingdom Holding, Fidelity, and Sequoia Capital have shown continuous support for xAI, having also contributed to their $6 billion Series B round. Despite OpenAI's current $157 billion valuation, Sam Altman, CEO of OpenAI's competitor, praises Musk's firm's rapid development, pointing to xAI's potential as a serious competitor in the field of artificial intelligence.
