Elon Musk’s AI startup xAI has been valuated at $24bn after the company recently raised $6bn in Series B funding, as investors continue to place large amounts of money into companies like OpenAI.
The funding round was backed by investors including Andreessen Horowitz, Sequoia Capital, and Kingdom Holding, according to a company blog post.
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Founded in July 2023, Musk’s startup has been working on its ChatGPT-rival Grok-1, which it released in November and made available for premium X subscribers.
Following on from the chatbot’s initial release, xAI has followed in the footsteps of its rivals and released steady updates to its Grok model, culminating in the most recent Grok 1.5V update with image understanding and long context capability.
According to Musk on X, xAI’s pre-money valuation was $18bn.
“There will be more to announce in the coming weeks,” Musk said in another X post, in response to the announcement of the funding.
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By GlobalDataMusk previously stated xAI was “pro-humanity from the standpoint that humanity is just much more interesting than not-humanity”.
“If it tried to understand the true nature of the universe, that’s actually the best thing that I can come up with from an AI safety standpoint,” he added.
GlobalData forecasts that the overall AI market will be worth $909bn by 2030, having grown at a compound annual rate of 35% between 2022 and 2030.
In the GenAI space, revenues are expected to grow from $1.8bn in 2022, to $33bn in 2027, a CAGR of 80%.
